Amazon Advertising Platform For Apps Is A Big Boost For Developers

amazon mobile app ad network, Inc. (NASDAQ:AMZN) has unveiled a new advertising platform specifically designed to market mobile apps. The advertising platform will help 10 million mobile app developers worldwide to promote and market their apps to smartphone users. The platform allows developers promote their apps on Android smartphones and tablet besides Amazon’s in-house Kindle tablets.

Amazon’s mobile app advertising platform is designed to follow CPC (Cost Per Click) model; as and when a user clicks on the mobile app ad, developers would be charged for it. Amazon has set a minimum budget of $100 to start a campaign.

Lyn Hart, a spokeswoman for Amazon says, “We work with many developers to support merchandising and advertising across our platforms and devices. We realized that many more developers would benefit from this advertising and merchandising.”

For Amazon mobile advertising market holds a big opportunity window. The market has been growing exponentially for the last few years. Globally, the Internet and mobile advertising industry is estimated worth $170.5 billion in 2015. The market will further swell to $204 billion by 2018. US will contribute 51% of the market revenue this year, of which 32% would come from mobile advertising alone. US, China and Japan will be the top three contributors to the mobile advertising industry. Next year, in 2016, global mobile ad spend is estimated to reach $101.37 billion.

Google and Facebook are dominating the mobile advertising market. More than half of their advertising revenue is coming from mobile devices. In Q1 2015, Facebook ad revenue clocked at $3.32 billion, of which 73% came from mobile ads.

Nearly 3.4 million mobile apps are available for downloads. Google Play boasts well over 1.4 billion apps.

The above statistics clearly indicates how big mobile app advertising industry has become. However, with the growing number of apps, it’s becoming more difficult to filter the best apps or find out the most suitable apps for various purposes. Developers are well aware of the challenge; consequently private app stores have started making a foray into the mobile app advertising market.

Amazon’s new app advertising platform is currently limited to US market. However, considering most of the Android apps are not limited to a particular geography, it would be easier for app developers to explore the US market by allocating a small chunk of their advertising budget.

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