However, it works to Amazon’s benefit even more. E-Commerce offers advertisers more focused insights into consumption behaviour than generalised interests revealed on other digital platforms. It is also among the fastest-growing online ad segments in the country. This could speed up as e-commerce scales up on new digital infrastructure that should make it more competitive.
The Open Network for Digital Commerce (ONDC) visualises a network of interconnected e-marketplaces that makes it easier for small store owners to tap demand online. Early user experience has been positive with customers reporting noticeable price differences in orders placed on apps using ONDC.
Even in this widening market, mainstream online advertising has a lot going for it. Alphabet (Google) and Meta (Facebook, Instagram, Threads, WhatsApp), which still dominate, have built up an extensive tool chest to push the envelope further.
Video-streaming platforms like YouTube and Instagram are cannibalising television advertising at a phenomenal pace. Google has not yet monetised non-commercial search, which is roughly four out of every five queries on the internet.
Besides, e-commerce has nothing comparable to the divisible ad revenue between online content creators and distributors. Plus, Google has a bouquet of apps, such as Google Maps, that can be fielded in a game of strategic advertising. Finally, app stores on iOS and Android devices create immense e-commerce destinations that are guided by revealed consumer choice.A reduction in market concentration in online advertising is good news, provided it moves beyond the control of Big Tech. Adding an Amazon into the mix does not serve that end. Search will keep reinventing itself to stay relevant in the online advertising business as user engagement shifts.