Report: Amazon eyes new weapon in online ad fight with Google
Amazon is reportedly close to purchasing a bankrupt online advertising platform.
According to Bloomberg, Amazon may announce a purchase of Sizmek Inc. before the end of this week. Sizmek, which declared bankruptcy in March, provided an ad server solution that enabled companies to place online ads and measure their performance. The solution directly competed with the Google Marketing Platform.
When Sizmek filed for bankruptcy, the company estimated the value of its assets to be $100 million to $500 million. Marketing/CRM technology provider Zeta Global Holdings Corp. has purchased some of Sizmek’s assets for $36 million. Neither company has publicly commented.
According to a February 2019 survey from advertising software vendor Nanigans and Advertiser Perceptions, Amazon is rapidly gaining momentum in the digital advertising race. Retail marketers estimate Amazon gets 14% of their digital ad spend, placing it third behind longtime leaders Google (21%) and Facebook/Instagram (19%). Additionally, half of those surveyed said they are planning to spend more with Amazon over the next 12 months, with an average planned increase of 25%.