Amazon.com Inc. (AMZN) is planning to make waves in digital advertising next year as it expands its current 2% presence in an $80 billion U.S. digital ad market. Such plans would certainly threaten the combined 70% stranglehold that both Facebook Inc. (FB) and Alphabet Inc.’s (GOOG) subsidiary Google currently have on that market, and transform Amazon into a strong international player in the ever-growing $209 billion global digital ad market, according to CNBC.  

As of the close of trading on Wednesday, Amazon is up 58% year to date, Facebook is up over 54% and Google is up 36%. (To read more, see: Amazon Hits Record, Bezos Net Worth Tops $100B.)

The Rise of Amazon

In becoming the e-commerce giant that it is, Amazon has reinvented the retail industry, offering big selection and low prices, combined with fast free shipping for its Prime members. But it didn’t stop at disrupting the retail business.

The online retailer has ventured into video and music streaming services through its Prime membership program, grocery delivery services through Amazon Fresh, and even offers automated home control services through Amazon Alexa. Now, the company wants to take on two other tech giants—Google and Facebook—in the digital ad space, and that is expected to see global growth of 13% to $237 billion over the next year.  (To read more, see: Which Industries Should Amazon Disrupt Next?)

Disrupting the Digital Ad Space

Most of the conversations surrounding Amazon’s plans to expand its digital ad services focus on the company’s “e-commerce search and video products,” but there is talk of going beyond its own products to work with third-party mobile advertisers, according to CNBC.

One of the signs the e-commerce giant is getting serious is the ramping up of hiring advertising division personnel. Back in July, Amazon’s CFO Brian Olsavsky noted during the Q2 earnings call that the company would be increasing its ad sales staff. 

One specific tactic to attract more ad revenues is to allow purchases of entire pages that will be customizable. Companies will be able to tailor the page using built-in video and other tools to tell a story that strengthens their brand and makes their products stand out.

One of the goals is to make advertising feel less like advertising. This will mean moving away from advertising in its traditional forms and making it feel more organic and natural.

The big challenge will be how to convince those companies that see Amazon as a competitor that has disrupted the way they have traditionally sold their products. Advertising on Amazon’s site has become a bit of a “necessary evil” for many companies.

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