Amazon.com, Inc. (NASDAQ:AMZN) is now using its content streaming gadgets to advertise products.
Looking back at how the company has grown especially through online retail, it was rather expected that the firm would take this direction with its products. The company recently activated its eCommerce functionality on the Fire TV, thus bringing to live the plan to take advantage of the device as an advertising and shopping platform.
Sources familiar with the information claim that the company started testing the service two weeks ago. It is currently not a fully formed shopping platform meaning customers cannot use their TVs to search through Amazon’s online store. The company has only deployed banner ads on the Fire TV. However, it is highly likely that the company will soon follow that direction.
Amazon is apparently creating a shopping channel that will rival QVC, where shoppers can place purchases right from their screens. The eCommerce company is expected to launch the channel in 2016. Amazon will use the X-ray feature to display information about products on the screen. It is the same feature that Amazon uses to display information about TV shows.
According to GeekWire, Amazon has been planning to bring the idea into life for some time. Amazon can use its recently acquired game streaming service, Twitch as a tool to promote more products. This project means Amazon has more advantage over its content streaming competitors such as Roku. Connecting its streaming business with the online retail business is the perfect example of hitting two birds with one stone.
The idea presents great opportunities for the company as far as reaching the masses is concerned. One of the advantages is having an extra advertising platform where the company does not have to incur advertising costs since it owns Fire TV. So far, Amazon is the most successful firm regarding the use of its consumer products to take advantage of its presence in the eCommerce industry.
Sources: Fortune, TheVerge, GeekWire
