Amazon cares about pushing products while Google cares about pushing advertising.
“Amazon wants to sell stuff to me — whether its content, services, or products — 24-hours-a-day,” says Gartner analyst Werner Goertz. the idea wants to be a platform which “takes a cut of all economic activity.”
By selling low-cost smart home devices of all types, Amazon feeds its services and also also also retail business, whether through getting more people to sign up for a Prime subscription or using its home services unit for installations. Being the backbone of your home will help as the idea expands to sell you everything you might possibly need: groceries, pharmaceuticals, and also also also more.
Sure, Amazon can be an an up-and also also also-comer in online advertising, supposed to book more than $4 billion This kind of year, and also also also has started out experimenting with sponsored Alexa ads, although the idea’s still early days.
Google, on the additional hand, booked more than $54 billion in advertising revenue within the first half of 2018 alone.
As more people start interacting via voice instead of screens, Google’s advertising engine needs to be ready to adapt. Having its platform in your home not only means the idea’ll have completely new ways to serve ads, although will also let the idea collect completely new types of dataabout its users, which can be used to better target advertising for its users across all form factors.
Google does not need to pressure its already shrinking margins by building a bunch of completely new products just to serve ads and also also also collect data — the idea’s much cheaper rand just as effective to form partnerships and also also also let its software do the work.