The hope is that it will help them to be able to bypass some of the hesitations of marketers.
Amazon is now trying to provide a new opportunity to developers and publishers that will help them to more effectively take advantage of mobile commerce, in conjunction with the expected rapid increase in ad spending over this channel in the next several years.
App developers have been struggling to convince marketers that they are worth the limited ad space.
This new Amazon mobile commerce option opens up a whole new world of real estate, as its mobile ad units enable Android apps for the sale of products while they take a cut that will be as high as 6 percent. For instance, A company like Electronic arts would be able to give its Madden NFL 25 app players the chance to purchase NFL team jerseys through these new ads that are built right into the apps.
It will help app developers to work ads into their products so that they can profit from mobile commerce.
Another example would be the ability of Rovio to work ads into its Angry Birds app so that it could sell the associated line of plush toys or figurines over mobile commerce. The only real rule is that the products that are being offered through the in app ads must be available for purchase on Amazon.com.
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If this new mobile commerce feature proves to be successful, Amazon could also have the opportunity to take a large chunk of the ad business that it has been silently assembling as it boosts its potential rivalry with Facebook and Google.
This new mobile commerce ad unit at Amazon not only makes it possible to boost the base of mobile advertisers to become greater than the standard app publisher pool that is seeking downloads (in fact, the new program prohibits the sale of additional apps), but it accomplishes this without the requirement that the publishers run a sales team in-house.
The sheer size of Amazon makes it possible to encourage mobile commerce participation from the small player, particularly when it can be done without having to build a sales force. This becomes a much easier way to monetize their ads.