Dive Brief:

• Amazon is reportedly testing an attribution tool that lets advertisers compare how effective ads on its sites are versus those on other sites, according to Digiday. Advertisers that sell on Amazon are being invited to pilot the tool, and they can analyze the influence of display, search or video ads outside of Amazon based on page views, purchase rate, sales and other metrics.
• Amazon has also introduced a "sponsored" video placement in its Prime Pantry service that's available to Prime members for an extra $5 per month, according to an AdAge report. Kellogg's was one of the first companies to use the new ad placement for its Frosted Flakes brand.
• The videos play automatically and do not include sound. They show a 10- or 15-second silent spot for the product. Amazon already lets brands add video to their product detail pages. Video ads are also available in search results.

Dive Insight:

The new attribution tool and sponsored video placement signal how Amazon continues to position its ad business for accelerated growth as marketers are gearing up for the upcoming holiday season. The attribution tool, in particular, is also the latest example of how, as Amazon's ad business grows, it is competing more directly with Google.

Competition for Amazon search rankings is intensifying, as more advertisers come on board the platform. The new attribution tool could help marketers compare their Amazon product pages versus their own sites to better measure ROI and campaign effectiveness. Google already offers advertisers attribution capabilities to measure their Google campaigns, as well as their Amazon campaigns, according to Digiday. Amazon also began testing retargeting ads, similar to Google, in May.

Adding more video inventory could lure more advertisers to Amazon, as marketers continue to increase their digital video investments. It's unclear if the Prime Pantry placement will be a permanent ad offering, but Amazon has been putting a greater focus on video advertising to help marketers show off their products on the site.

Amazon could grab a larger portion of advertisers' ad spend this holiday season, as many marketers are attracted to the platform's troves of data on customer search and purchasing behaviors. More than half of all shopping searches begin on Amazon. Last year, Amazon had its biggest-ever holiday season, and it was estimated that the company comprised more than 50% of new digital sales, according to CNBC.

Amazon has been beefing up its ad offerings to grow its ad business and compete more heavily with Google and Facebook, which dominate the digital ad space. For Q2 2018, Amazon posted $2.2 billion in "other" revenue, which mostly includes advertising, a 129% year-over-year growth. The company announced last week that it was expanding its Boulder, Colorado-based advertising hub to prepare for future growth. The company has also been working more directly with brands, sidestepping agencies to build stronger brand relationships.