Amazon Ramps Up Its Video Advertising Business

The online retailer partnered with FreeWheel to roll ads in its short-form video.

Amazon Ramps Up Its Video Advertising Business
[Image: Flickr user MikeBlogs]

The how-to videos, game trailers, and movie trailers you see on Amazon will soon be rolling a lot more ads, thanks to a partnership with video ad platform FreeWheel, announced Wednesday.

Product videos could include an interactive “Shop Now” or “Learn More” button, so videos seen outside of Amazon’s site will bring viewers to the product page. It’s no secret that retailers and brands love video, embracing the medium because of its ability to convert viewers into shoppers. In a case study, Zappos, for example, was able to increase sales by anywhere between 6% and 30%, but some companies have reported increasing the conversion rate by as much as 160%.

Though Amazon is tight-lipped about its ad business, a report from eMarketer last year suggested it raked in close to $610 million worldwide in 2012. Most of these ads were estimated to have been ads placed near Amazon search results.

About the author

Based in San Francisco, Alice Truong is Fast Company's West Coast correspondent. She previously reported in Chicago, Washington D.C., New York and most recently Hong Kong, where she (left her heart and) worked as a reporter for the Wall Street Journal.



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