Attention, Amazon Shoppers: Google Wants Some of Your Spending Money
Google also said it planned to introduce new “Discovery” ads in YouTube, its Discover news feed, which appears beneath the search field in the Google app and mobile website, and Gmail later this year. The goal is to target audiences across different Google properties using what Google knows about users based on their online searches, the videos they watch on YouTube, the websites they browse and the apps they download.
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“We’re making more of Google shoppable,” said Brad Bender, the vice president of product management for the company’s ads division.
Google has made other efforts to slow Amazon in e-commerce, with little success. It started a shopping service in 2013, initially offering free same-day delivery before scrapping it. It also tried grocery delivery but gave up on that, too.
More recently, Google has spent several years building its Google Express, featuring more than 1,000 retailers, including Best Buy, Costco and Target. As part of its new shopping push, Google said, it will create a shopping home page that is personalized for users.
Google is adding new advertising and shopping products as it tries to quell concerns that its revenue growth has started to decelerate.
Last month, Google’s parent company, Alphabet, announced quarterly results that fell short of Wall Street expectations, dragging down its share price. One concern raised by analysts was that ads on sites like Google and YouTube had grown 39 percent, below the increases of 50 to 60 percent in recent quarters.
Even as Amazon has become a giant in online sales, only recently has it had an advertising awakening. Many analysts see advertising as a rising third pillar of the business, along with the company’s retail sales and cloud computing services. In an analysis released Tuesday morning, Morgan Stanley estimated that Amazon’s ad business would be valued at $85 billion on Wall Street.