Amazon is considering a more serious bid against YouTube, ad industry sources say
One potential programme would pair vetted video creators and companies to create sponsored content, and Amazon would take some of the deal revenue
By Michelle Castillo
Amazon is taking meetings about launching programmes to bring more advertisers to its video platforms and make it a stronger competitor against YouTube .
The company has had multiple meetings where it suggested it would be launching more advertiser-friendly initiatives. Several people said Amazon suggested it would be more open to giving advertisers more data on what viewers were watching and what they were doing online. Another potential programme would pair companies with vetted video producers to create sponsored content, one buyer said. Since the production is technically an advertisement, Amazon would get some of the deal money.
Amazon has also met with several technology companies regarding how to prevent inappropriate content from appearing next to ads, an issue called content adjacency , several people with knowledge of the meetings told CNBC. The industrywide issue was put in the spotlight when several ads on YouTube and on other Google-owned platforms were seen running next to neo-Nazi and jihadist content in March.
CNBC spoke to five sources with knowledge of the talks, including people from major advertising companies and media companies. These sources requested anonymity because these were private meetings with Amazon about potential projects, and they were not authorised to discuss them publicly.
Digital video advertising is booming, with U.S. video ad spending reaching US$13.23 billion this year according to eMarketer. One of the largest recipients of revenue is YouTube, which will garner 21.7 per cent of U.S. video ad revenue this year, according to eMarketer’s estimates. However advertisers have been hungry for more places to put video in order to increase competition, especially with a company that could have the scale and reach of YouTube.