Amazon's UK site to carry advertising

 

LONDON - Amazon, the world's largest online retailer, is set to tap in to the booming online ad market by opening its UK site to advertising.

It is in final talks with online ad network eType about handling the advertising, which it plans to run around its soon-to-launch music download service, as well as throughout its retail areas.
Amazon has only made tent-ative steps into the third-party ad market in the UK.
In January 2006, it brokered its first deal with a third-party, Virgin.net, but insisted that its inventory was not open for a free-for-all.
The account win will boost eType, which lost the job of selling advertising on video sharing site YouTube in the UK following Google's takeover last year.
Since then, it has re-entered the video advertising space through a deal with Videoegg, which involves serving video ads across social networks including Bebo, Hi5 and Piczo.
Amazon signed a deal with EMI earlier this month as part of a move into digital music sales.
The retailer, which has built much of its business through selling CDs and books, will sell DRM-free music, allowing users to store and share tracks after purchase.
Although Amazon does not host third-party advertising, it is thought to gain up to 40% of its sales from affiliates that direct traffic to Amazon's website.
Neither party was available for comment as Media Week went to press last night.

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