Thursday, August 18

Amazon’s Slated New Phone Could Spell Lost Ad Revenue for Google

It’s interesting times right now for search engine optimization (SEO), and Amazon’s announcement of its upcoming Amazon Fire smartphone launch has only stirred the pot more when it comes to Google’s dominance of search engine results. As an intriguing mix, the center example of what could happen if people take to Amazon’s phone is something called “coconut flour.”

For anyone unfamiliar with coconut flour, it’s a gluten-free alternative to normal flour that’s made from crushed, dried coconut fiber. Unlike regular flour, coconut flour is liable to absorb moisture. For this reason, stores need to stock it reliably so that it’s never sitting out too long before reaching customers.

Coconut flour is an example of the many millions, and even billions, of dollars in ad revenue that are at stake in the battle between Google and Amazon. Currently, users who search for coconut flour will first see a paid ad by Amazon appearing at the top. In organic search results, Amazon ranks second. In other words, Amazon is on the page twice — which many marketers would agree is pretty good.

However, Google now lists images of competing alternatives to the right of Amazon’s ads. Amazon has so far resisted using these product listing ads (PLAs) for any of their products, even though Google would desperately love for them to start paying — Amazon is currently the internet product behemoth with $80 billion a year in product sales and ad revenue. Amazon’s competitors, including eBay, are already buying up PLAs.

“The tug-of-war between Amazon and Google is just another example of how the importance of rankings are diminishing. Optimization is no longer about ‘being first on Google’ – it’s about being the first to come to mind, which requires a blend of brand awareness, reasonable search engine rankings, and a dynamic social media presence, all around a solid, reputable brand.” Derek Bryan of Quez Media 

If Amazon is able to re-direct consumers with its own phone, that could allow it to edge into valuable market space without having to fork over millions in advertising costs to Google. It could even cut Google out of the loop completely. Of course, Amazon’s new foray won’t be without risk — the smartphone market is highly competitive, and already crowded. If Amazon wants to stand out, it will need to go above and beyond to offer consumers conveniences they can’t easily get from other devices and apps.

The Fire Phone, which will begin shipping on July 25, is slated to sell for $199 for 32GB, and will include a free year of Amazon Prime. According to those who have seen the phone at its recent launch event, one of its most unique offerings is its 3D capabilities, made possible through the use of cameras that track head movement.

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