Google Turns to Mastercard to Fight Amazon



Google is expected to lose US ad market share

Alphabet’s (GOOGL) Google has partnered with Mastercard (MA) on a program that could help it push back against Amazon (AMZN) in the digital advertising market. Amazon has been mentioned as a growing threat to both Google and Facebook (FB) in the advertising business.

Google and Facebook captured 58.5% of all US digital ad spending last year, but that’s expected to fall to 56.8% this year, in part because Amazon is growing far more quickly in the digital advertising space, according to eMarketer estimates.

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Online shoppers begin product searches on marketplaces

Amazon’s push for more advertising dollars seems to be supported by the trend of online shoppers beginning their product searches on marketplaces rather than on search engines, according to a UPS Pulse study. Although marketplaces may be generating more traffic for retailers, what’s important is which traffic sources translate to more sales.

Google lets advertisers see how its ads drive sales

In partnership with Mastercard, Google has built a tool that lets advertisers see how their spending on Google ads translates into real-world sales, according to Bloomberg.

This is a way for Google to convince advertisers that advertising with it is more effective—an effort that may help Google pull more retail ad spending. Besides tracking how Google search ads drive store sales, Google has also built an online mall called Google Express that traditional retailers such as Walmart (WMT) have embraced to extend their online presences and keep the pace with e-commerce giant Amazon.


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