Brief:

• Amazon and Vungle partnered on user-acquisition campaigns to the online retailer’s Fire tablets. The Vungle software development kit (SDK) for the Amazon Appstore will be available in September, which may make it easier for app developers to improve their monetization and reach on Amazon devices.

• Vungle’s support means that publishers and marketers can reach gamers and non-game consumers with targeted ads on the Fire tablet, helping them find interested users and potentially drive results for their campaigns. Vungle has software development tools for Android, iOS and Windows already.

• Market researcher IDC said adoption of Amazon devices increased 12x in 2016, making it an increasingly important device for developers and brands. As consumers spend more and more time on their mobile device of choice, mobile advertising is expected to reach $215 billion globally by 2021.

Insight:

While iOS and Android devices get most of the attention among brand marketers, Amazon continues to grow the business for its tablet devices, which act as a gateway to consume media and to shop for products at its online store. Marketers, especially retailers, have shied away from having a presence on the Fire tablet because of competition with Amazon. However, as Amazon continues to extend its reach into content and hardware, thereby keeping consumers on its platform more engaged, all brands should be taking a closer look at whether or not they need a stronger presence on Amazon. 

Advertising is becoming one of Amazon’s fastest-growing businesses, according to the company's second quarter earnings report. Its "other" sales category that includes its advertising business and cobranded credit cards grew 51% to $945 million from a year earlier, faster than any other business line. That growth could pit the company against the so-called digital ad “duopoly” of Google and Facebook. 

The Kindle Fire tablet was launched in 2011 with enormous fanfare and predictions that it would present a major challenge to Apple’s iPad. Six years later, Apple is still the market leader with an estimated 25% share of global shipments, according to IDC. Samsung is second with 15%, and Amazon is third at 10%, but the overall tablet market slumped as smartphone makers introduced devices with bigger screens that cannibalized sales.