Amazon Knows What You Buy And It’s Building a Big Ad Business From It

Description: When a chain of physical therapy centers wanted new patients, it aimed online ads at people near its offices who had bought knee braces recently on Amazon.

Source: NYTimes.com

Date: Jan 20, 2019

When a financial services provider wanted to promote its retirement advisory business, it directed ads to people in their 40s and 50s who had recently ordered a personal finance book from Amazon.

And when a major credit card company wanted new customers, it targeted people who used cards from other banks on the retail site.

The advertisers found those people by using Amazon’s advertising services, which leverage what the company knows better than anyone: consumers’ online buying habits.

“Amazon has really straightforward database — they know what I buy,” said Daniel Knijnik, co-founder of Quartile Digital, an Amazon-focused ad agency that oversaw the ads for the clinics and retirement services. “For an advertiser, that’s a dream.”  READ REST OF STORY

 Questions for discussion:

1. Do you feel that Amazon can out google , Google in its ability to target customers for advertisers?  Why or Why not?

2.  The size, reach, and power of Amazon are immense, do you see any problems with the worlds information being controlled for the most part by  3-5 ver y large tech companies including Google, Amazon & Facebook?  Why or Why not?

49 thoughts on “Amazon Knows What You Buy And It’s Building a Big Ad Business From It

  1. Paul Jackson

    While I do not necessarily feel that Amazon can beat Google at it’s own game when it comes to targeting specific customers, I do think that they can come very close. In my opinion the one main big advantage that Google has, as a search engine, over Amazon, which is largely focused on the retail industry, is the almost direct link to consumers brains and thoughts. Thanks to modern technology we have the incredible ability to access all the knowledge or wisdom one could possibly seek through our pocket computers or smartphones. We have the ability to find the answer to any question almost immediately, all we have to do is google it. Of course there are exceptions, but by far the most popular and widely used search engine is Google.

    I can’t possibly think of a better way to get to know what someone likes or is like than by knowing the questions that pop into their heads throughout the day. I personally use Google as my search engine and I would imagine that if a person had access to all of the different searches I have done throughout the years, they would easily be able to spot different patterns and consistencies in my browsing habits and through that process determine at least some of my interests and how often I may be interested by a specific topic. The same idea applies when Google uses searches of places to determine how busy they are likely to be throughout certain times of the day, depending on how many people searched for that place at those particular times.

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  2. Kimberly Eckert

    I believe Amazon definitely has the ability over Google to better target customers for advertisers. Google has limitations as its main use is as a search engine, whereas Amazon is a search engine of sorts, but product based as its essentially a giant online warehouse to buy practically anything under the sun, and with the flexibility to choose your buyers and sometimes receive a better deal than purchasing from a store in person. This purchasing component is very advantageous as Amazon has all the information they need to better target their customers for future purchases as they retain all of their personal information and they continue to store and build their customer databases. This stored information creates more custom advertisements to better attract their audience and they have the resources to target their audience on platforms that their customers are most frequently on as Amazon also has the ability obtain their computer usage. For example, if a customer purchases a piece of jewelry from Amazon, there is a very high chance of ads popping up on their social media platforms such as Facebook, Twitter, or even the Instagram discover page featuring jewelry similar to the item that that customer just purchased a moment ago. Even if that item wasn’t actually purchased but just merely browsing on Amazon, they will also document those searches and sooner than later, random ads will be popping up that are very similar to what that individual was searching just moments ago. Amazon builds a database for every single individual on their website, whether it be merely just browsing, purchasing, or searching through various categories and brands.

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  3. Guji Adula

    1) It is hard to beat google advertisement strategies because first of all we google amazon!!!!! Google has match type called Modified Broad Match. This match type makes the Broad Match more specific by allowing their product to appear for misspellings, singular/plural forms, abbreviations, and acronyms of that word. Google Ads direct shoppers to the brand’s website, the advertiser is able to track user information such as demographics, keywords, and geographic location. Amazon, on the other hand, is limited to the data it collects on the Amazon website itself, such as purchase history, returns, and conversion data. Further, Amazon will only capture shopper information if they convert on your product page.
    2) Big Tech has a target on its back. Right now in the US, there are multiple, simultaneous government investigations focused on the business practices of each of the four Big Tech giants, Amazon, Apple, Google, and Facebook — that could someday lead to the breakup of these companies or major changes in how they operate. It’s easy to get lost in all the antitrust talk because of the complexity of antitrust laws in this country and the fact that most specific complaints about Big Tech companies happen behind closed doors. But last week, top executives from four smaller, competing companies — the wireless speaker company Sonos, the cellphone grip maker PopSockets, the gadget startup Tile, and the business software company Basecamp laid out their complaints at a public hearing before the House of Representatives Antitrust Subcommittee.

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  4. Jennifer Biglin

    I think in terms of online shopping and online advertising I think Amazon has an upper hand on Google. Google works more on search engine optimizations and clicks by clicks and such, but Amazon is using its cookies to target customers that have previously bought things. Amazon knowing (and not Google) that you recently bought a low carb cookbook, is a much bigger advantage than Google could ever have. By Amazon having this power, it opens questions to questions of privacy and what the cookies can be allowed to take. But as the article said, we as customers have put that information out there and we have to agree (or not to agree) to what Amazon’s terms are. This is a golden snitch for advertisers and they very much must use it to their advantage, it would be negative on their part if they did not.

    Oh, this is very scary. All the information we put on these sites is immensely personal. Yet, these sites are all part of our day to day schedules. A big majority of us have a google account—whether its a personal email, business email or a YouTube account. We share our lives on Facebook, and if not Facebook then Instagram which is still under the same company. We will not be able to escape these businesses, even if we do not use one of these sites. The fact that these companies can sell to other companies our information, is frightening but one does not think about it until you are put in a situation where your personal information is at danger, unfortunately.

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  5. Grace Noble

    I think Amazon can outperform Google in its ability to target customers for advertisers. I think Amazon is able to gather more direct information from their users and companies can use this information to have more targeted advertising. The difference between Amazon and Google is Amazon tracks what actually gets purchased by each consumer and Google can track what is searched by users but that does not necessarily mean that anything was purchased by the consumer. It makes sense that Amazon’s advertising programs are working so well, because through Amazon’s algorithms the advertising can be very personalized for each individual user. With Google the adverting is not quite as personalized, and Amazon just keeps expanding and working its way into new markets.

    I definitely see a problem with information being controlled by a limited number of large tech companies. It brings the concern of the data privacy into the conversation; I think for the most part the average person doesn’t realize the amount of control or access they are giving to these companies when they simply click the privacy agreement box on the website. It becomes an issue where the advertising gets to be almost too personalized for the consumer, in my opinion. It also shows just how interconnected these tech firms are when I add something to my cart on Amazon and later, I notice advertising for that same or similar product on my Facebook or Instagram feed. I feel it is important for people to become more education about who their sharing their data with

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  6. Danielah Uzonwa

    Amazon is growing, and growing fast at that. Maybe someday Amazon could out Google. However, Google has more than two-thirds of the market share in the data and information industry. Amazon basically just has customer data to go off while Google has far more data sets about more people from different websites and databases.
    There would always be disadvantages and advantages to having bid data of you out there, The fact that the information in the world is being controlled by 3 to 5 companies does bring panic but there is less chance that these companies would just leak these information as it would attract unwanted eyes and deeper regulations. Also, from a business standpoint, you need big data to analyze your market. You need to know the trends, your market segments and all that. So there will always be pros and cons to large sets of data being out there.

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  7. Ryan DiFlorio

    1. I believe that Amazon is the largest company in the world and they are continuing to grow and dominate several different markets. It would be difficult for me to say that they will get bigger than google in the targeted advertising ability because almost everyone that goes on amazon, is getting there from opening google first. Both are very good at targeted advertising but I don’t know if amazon will be able to surpass google in their targeted advertising because google gets search results data and amazon just gets what people purchase on amazon
    2. I do see a problem with that because those 3 companies have a string oligopoly in the market and they have the ability to make serious changes with all the power they have. With their combined data, they probably have knowledge on almost everyone in the world that would have access to internet. This gives them a lot of power and can lead to bad decisions or information leaks/hacks. With big data becoming an increasingly popular industry, I wouldn’t be surprised if the government began implanting regulations to slow these companies down and give them less power.

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  8. Callum Hakin

    1. I do believe that Amazon can out google, google when it comes to advertisers targeting consumers. Due to the sheer size of Amazon they have all the funds and resources to place ads anywhere and everywhere. Amazon sells literally everything, so I believe advertising for them they have a major advantage, the only disadvantage for them is that they are not a search engine. Google has the upper advantage because they have information tracking technology. Google can collect on data on everyone and translate that into advertising material. Google users can search things without any intention of buying that said thing which is where google could maintain their dominance if they capitalize on sending out targeted ads to these searches.

    2. Of course, there is a problem with a very select few companies controlling the information that is readily available. With any Oligopoly there is a problem because they essentially control everything in that certain space they occupy which is incredibly dangerous when talking about the access of information. This is a problem because if these companies who control the market have mal intentions there is literally no one to stop them from spreading their way of thinking, whether this be in a propogandist way or in a more discreet way. People need access to non-biased information to make informed decisions. Everyone needs a voice that isn’t being specifically swayed one way or the other. Another problem is that the barrier to entry is way to high for other smaller companies, essentially ridding the world of competiton.

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  9. Gwendolyn Fillinger

    1) Yes, I think that Amazon has the ability to out Google Google. The way that Amazon is very well used by its consumers, enables it to target ads to the customers. Google and Amazon have the same aspects on how they place ad’s at consumers, following their recent searches and what an individual has recently purchased. It can be hard to find evidence in how Amazon can out google, Google. But as a widely used site, consumers are easily targeted, and ads are easily placed.
    2) This kind of feels like a breach of confidentiality. I understand that people when they sign up for Facebook, click a box about the privacy act of using it, but to an extent, people are not fully aware of how their personal likes and dislikes are being targeted by ad companies. It also becomes annoyed for individuals, when they look up a certain type of item, let’s say a pair of shoes, but when it comes to buying them the individual changes their mind and doesn’t want them anymore. And from there on, that individual is targeted with ads on all social media on that type of shoe they once wanted. It really scary knowing that, if you look at something on one browser, it shows up on all your social media apps and accounts. I can see how this can be a problem for people because of the lack of privacy that we can receive from these big tech companies. It really puts into question are they just doing this for statistical purposes or is there other reasons?

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  10. Tyson Wirun

    1. I do Believe that Amazon can out google in its ability to target customers for advertising. I think that Amazon has tons and tons of products and I think targeting specific audiences is a very effective way of selling product. Like the article says its very effective that amazon was able to target the audience when selling knee braces. And obviously people who need knee braces and have those ads pop up i’m sure wouldn’t be upset. The only way Amazon will never pass google is because googles traffic is way higher then Amazon. So yes Amazon may have the more efficient system but I doubt they will ever get the traffic that a big corp like google would get. Amazon can be more efficient with the information though as there website pretty well contains any product in the world that is available to anyone across the world and to anywhere.

    2. I don’t really see much of a problem with companies especially 3-5 having my personal information although I do understand for some people it is a very major red flag. With such a small amount of companies having this information I feel like its less likely to get out there. Almost like if you told 2 buddies a secret, versus telling you’re class the secret. Its more likely you’re 2 buddies won’t reveal the information but at least one of you’re class ,mates would go tell someone after. As long as laws are in place to protect the information then I have no problem with it at all.

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  11. Mikayla Gerosa

    I believe that google has an easier time reaching people but amazon succeeds in people actually taking action. The reason for amazon is to purchase things where as google can be used for a variety of different things. Someone could be googling something just to learn more information, but when someone goes on amazon they are most likely going to purchase the item. I also believe that someone purchase history can predict what they would want to purchase in the future. Googling something does not always infer a future purchase. In the advertising game, I believe google is too broad and Amazon will soon be leading.

    I do not see a problem with these three companies controlling a majority of advertising because these are three of the most popular companies, which would result in reaching the most amount of people. Which is beneficial to the buyers to find what they are looking for and to the advertisers to make profits.

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  12. Sarah Andrews

    1. While Amazon does have some unique differences than Google that benefit them for advertising, I do not believe these differences are strong enough for them to out google, Google. The differences described include the fact that Amazon has information of things people are actually, 100% buying and Google does not. If I google “Cowboy Boots” I am going to be directed with ads for cowboy boots due to google’s information. However, by googling cowboy boots, that does not mean I am actually interested in buying cowboy boots and it does not mean any of my interest in cowboy boots will ever come again, so if there was a targeted ad for cowboy boots on my computer, it doesn’t guarantee that it means anything to me. With Amazon, if I am looking for something on amazon.com, my intention is to buy that item, as Amazon is a buying service and Google is more information based. If I am intending to buy something on Amazon, regardless of if I actually purchased it the day I searched Amazon for it or not, the thought of purchasing it is still in my head. This means that the targeted advertisements for cowboys boots are actually targeted for something that I have the intention to buy, not just something I was looking for more information for. There is more of a likelihood for me to click on an advertisement of something that I actually had the intention to buy rather than something I possibly wanted but needed more information about first.
    2. Having information controlled solely by 3-5 very large tech companies is something I see as inevitable with the ways in which information and technology are continuously changing. Regardless of if this is a positive thing or possibly an infringement of rights, it is more than likely going to happen and I believe we should be looking at more of “what can we do to react to this fact” rather than proposing the question of “is this a possibility.”

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  13. Gwendolyn Fillinger

    1) Well actually I would expect some sort of security measure within a private home but for a potential buyer, video surveillance should not be present. I understand how the seller might want to know what the buyer thinks of their home, but it becomes a matter of ethical reasons. Does having video surveillance violate any sort of privacy act? It can be helpful at some points to hear what people are saying and potentially use it to gain your advantage in a negotiation, but it sort of feels wrong. It is more ethical for retailers to inform buyers of the video surveillance, because the owners may have it for security reasons when they lived there. This can create a more comfortable feeling when viewing the house and also allow the buyer to see another feature that is with the house.
    2) There can be some exceptions to for this. If a retailer is present when the buyers are there, you could turn off your surveillance cameras, but if the buyers are alone it can be handing in case they are scamming you or potentially thinking of a robbery. I feel as if, a seller would be given a competitive advantage because they can hear the positive and negative things that buyers are feeling from the house. It can be unfair and also unethical.

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  14. Karla Otte

    1. I think that amazon can get close to what google does, in a different way, but I do not think that it will out google Google. This is because people who are not buying from certain companies while also not accessing amazon will be missed entirely in their targeted ads. In my opinion, Google picks up a lot more information from numerous sources that amazon just can’t access. I personally have used amazon once, and only saw ads related to my one purchase. At the same time, I use Google every single day. For me, Google is a search engine, and Amazon is just an online shopping site. Automatically, a search engine is going to have more access to data and therefore a larger scope when it comes to targeted advertising. I also think that there are people who will never use Amazon, so even if they could very accurately target advertisements, some people will never see them.

    2. Yes, as I think it could lead to the destruction/disappearance of smaller tech companies, leading to mass job loss. At the same time, a lack of competition could lead to these tech companies being able to hike up their prices, also negatively impacting smaller businesses. If advertising begins to cost a lot, or at least information needed to appropriately advertise begins to cost a lot, smaller businesses may not be able to afford it any longer and may lose a lot of business, forcing them out of business. If only 3-5 tech giants control all the world’s information, they can charge other businesses whatever they want.

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    1. Janesa Klein

      1) I do think that Amazon can out google for the exact reason that people can google things all day long, but on Amazon they are actually purchasing items. I personally google things all day long, but doesn’t mean I am doing anything about it. Therefor Amazon does have an advantage compared to google when it comes to targeting customers. An example is if person A was working out and hurt their and they google their pain or google if they should get a knee brace and Person B has had chronic knee pain for the past couple months and they order a knee brace, than the physical therapy center will want person B compared to person A. This is because person A can just ice their knee and move on with it whereas person B has been dealing with this pain for quite some time and will be more willing to pay to get rid of the pain.
      2) I think that it’s not necessarily bad having only a couple of the bigger tech companies taking over because it creates a competitive industry getting rid of the smaller companies. For us as consumers that can mean that they have control of the pricing and can increase the price and we can’t do anything about it. That the a problem, but also if there is only a few companies you know you can trust them.

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  15. Kaede Akutsu

    1. I do not feel that Amazon can out google because Amazon focuses on selling products. Moreover, Amazon has been steadily expanding its business of selling video or display ads, but Google is one of the biggest industry leaders in the world. Personally, I use both Amazon and Google, but I mostly use Google. Amazon is successful in analyzing their customers shopping behaviours. In addition, Amazon uses cookies to track their potential customers from other websites, so Amazon knows well their potential customers shopping behaviours. Also, their advertisements are successful. Most people know both Amazon and Google, but I feel that Amazon can out google in the future. Even though Amazon has been developing their technology.
    2. I see some problems with the world’s information being controlled for the most part by 3-5 very large technology companies including Google, Amazon, and Facebook. I feel that our information is controlled, so I think that the first problem is security. It is very uncomfortable that these companies know my personal information. However, it is useful for me. For example, my Google account knows my credit card numbers, so I do not need to type it every purchase. For ime, it is useful because I can buy products anywhere. I think that if these tech companies use our information ethically, it will not cause any problems, but if they use personal information unethically, it will be big problems. So, it is useful for people and companies to control most part ethically because it will reduce costs, such as time and money.

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  16. Brooklynn Peters

    1. I do not think that Amazon can out google, Google. Although Amazon has a great ability to target customers for advertisers, Google still has a great advantage. Google is integrated into all platforms essentially and Amazon is using Google. This can mean that Google has all of this information as well as some more. It is definitely possible for Amazon to become a large competitor with Google but I doubt it would surpass them. Google’s use of Google AdSense and its ad platform for businesses still provides a great way to target ads to customers and can use cookies from all sites, searches, and purchases to target advertisements.
    2. I see some problems with all of this information being held by 3-5 extremely large tech companies. It is more based on the morals and ethics of these companies. There may be some security issues with this as well, such as we have seen with data breaches and emails being leaked but if these companies know a lot more about us, there is more at risk than just emails. On the other hand, it would be very convenient to have all of this information in one area. It allows for a more efficient shopping experience and convenience in our daily lives as well. If there were greater measures put in place such as laws and regulations for security and the extent to which these companies could utilize this information, then I would not see an issue with it.

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  17. Imelda Tettey

    I do believe that amazon definitely has potential but I also don’t think it is enough to out google google. Amazon has had a substantial growth over the years, they have expanded their company into more than just shopping. Amazon and google both have the advantage of knowing what their customers like and dislike, because their customers search history and information are gather and are use in order to find a specific target market. Google provides a broader algorithm, whereas amazon is based on consumers and their wants.
    It is very scary to know that both companies are constantly keeping tabs on you. This puts our privacy at risk because the company can use the information that is being collected on individuals without their knowledge and use it for their own personal gain.

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  18. ismahan ali

    1. I believe Amazon would out Google because Amazon already build the trust in their consumer with items being delivered to them. The growth Amazon had in the last decade is tremendous, as they keep on evolving their delivery and item selection with low prices has consumers constantly addicted to using their site. Amazon is already deemed trustworthy website in consumers mind therefore has a higher reach and impressions when it comes to exposing advertisements. They also personalize each consumer ads based on their recent purchases and its easier to buy things as the site already has their address and payment saved, making purchasing more convenient.
    2. I do see a problem with 2-5 large tech companies having monopoly on the worlds information. Having the small amount of big companies containing peoples information means less privacy as well as people won’t be able to have bargain on items as these companies can raise prices and with no competition from other industries, we would have to settle. information would be constantly sold and more advertisement would be thrown at consumers wether they want it or not.

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  19. Brianne Fujimoto-Johnston

    1. I think that Amazon very well could out-do Google in the future. While Google is a very powerful and widely used organization, Amazon in the future could potentially provide more valuable information to companies in terms of advertising. Amazon is beginning to generate more popularity and with that comes more reach and power in the marketplace. Google is used greatly for all kinds of searches and thus, certainly could provide other organizations with valuable information for advertisements or ad campaigns. Although Google seems to be more dominant than Amazon at the moment, I believe that Amazon, in the future, could be able to takeover Google’s spot. Amazon has a more loyal customer base and good customer relationship management (CRM). Amazon also has direct access to consumer purchasing habits more so than Google because they specialize in e-commerce. Their ability to target consumers specifically and individually is especially useful and will definitely be used more and more by companies for marketing in the near future.
    2. There could potentially be issues that arise with the world’s information being controlled mainly by 3-5 large tech companies like Google and Amazon. There could be some worry in having very few companies having control over our information due to their extreme power and control it. This may cause these large companies to take advantage of their knowledge and use it to their advantage (put other companies out of business, take advantage of consumers, etc.) An advantage though, to having few companies with access to our information is that there are less people/companies with control over it which could be safer for us.

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  20. Emily Poelman

    Yes I feel like as Amazon grows they will be able to better target customers for advertisers, however, I do not think that this will happen for a very long time. Amazon would have to develop more systems to gather more information about each consumer. Google is a major competitor of Amazon. Amazon has better access to what customers are buying and what they are looking at to buy, whereas google has more access to what a customer looks up, but that does not necessarily mean that they are buying it which could be a bit misleading for ads. So in that regard I feel like Amazon will be able to out Google.
    I do not see a problem with a handful of companies controlling the world’s information. However, it would probably be a problem if only one company had control because they essentially have a monopoly on information, which could cause major issues with how the information is used. These bigger companies have been working and trying to perfect what they do so I feel like my information is more protected with them whereas if like 30 companies had control then my information would be more spread out which seems less secure.

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  21. Analiese Vissers

    I do think that Amazon can out-google Google in terms of targeting customers based on what they are looking for. Yes I do agree that Google has an advantage by tracking what information customers are looking up and targeting their customers based on that information that is being searched for. The downside to that is that just searching for the information doesn’t always lead to buying the particular product. That’s where Amazon can come in and observe the actual purchasing behaviours of customers and let advertisers use that information to provide ads to those customers for similar items. This real time information looking at the behaviours of customers in terms of spending is almost the next step to what Google has been doing so I do agree that Amazon has the advantage here.

    Yes it appears to be a bit concerning that most of the information is being controlled by 3-5 large tech companies but I think that looking at the situation from a different perspective can alleviate some of the concern. What I mean by this is that instead of having numerous companies controlling the world’s information, the way that information is collected and distributed to advertisers by only about 5 companies can be regulated easier. Even though these companies all have their challenges with security when it comes to the information that they collect, I would argue that having the information all in the hands of 5 or so companies will definitely put the consumer’s minds at ease. If endless companies were controlling the majority of the world’s information, the trust from consumers may be lost which is essential to for the success of those companies.

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  22. Dallas

    1. I think that Amazon has a fair shot at passing Google when it comes to targeting customers for advertisers. I believe this because Amazon simply has more information about their customers than Google has about their viewers. Amazon has the advantage when it comes to consumer information because people come to their site with the intention of buying something. Through this they can collect much more information then Google, who’s viewers may just be looking up random information without any buying intentions. I think adds based on information gathered by Amazon may have a higher return that those based on Google’s information because Amazon can track the buying patterns of its users as well as location and registry information.
    2.
    The idea that the worlds information is controlled by only a few companies makes me think of a few concerning problems. However, most of these problems are contained to the conspiracy movies, or at least I hope so. When only a few people or companies hold the worlds information they effectively control knowledge and what the world believes to be true. In an extreme case these companies would have the power to brain wash the world and control them for their own means, after all, knowledge is power. When knowledge is held in the palms of only a few hands those hands become very powerful. Hopefully this is only the plot of a movie and these companies do not have nearly as sinister motives, aside from that of making money.

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  23. Kim Hood

    4. 4. I feel like the information being used may benefit business to service its customers more effective but also it may not be as effective as it appears. Preferences can change quite easily, and I don’t think targeted data can outperform a product. I wouldn’t buy something if I didn’t need it or want it. It is neat to see what’s out there, and many instances targeting advertising could be effective like a business to business model. But I think effectiveness needs to be studied more. The amount information collected appears to be tremendous. I think personalization needs to be more individualised than just the advertising. Products need to be more effective. I question whether the information provided leads to better products. I’m not sure what the link is there. It seems its customer retention and service.

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  24. wencai jiang

    1. Do you feel that Amazon can out google , Google in its ability to target customers for advertisers? Why or Why not?
    Honestly it is really hard to say that Amazon can out Google. Both of these tech giants are fast-growing and have developed massive competitive advantages. Both companies also weigh in with market values close to $1 trillion, and they make up half of the famed quartet of FANG stocks that have provided a large fraction of the bull market’s gains over the last decade. So it’s really hard to say.
    2.Technology enables us to communicate with people all over the world in an instant. It helps us to learn at unprecedented scale and speed. And it helps solve serious problems that have plagued mankind for centuries, if not longer. It is good that those big companies to control information. People can easy to access, and make stuff more efficient.

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  25. Devyn Hurry

    Do you feel that Amazon can out google , Google in its ability to target customers for advertisers? Why or Why not?
    i think that they might notice that the type of advertisers that use them vary significantly. And the way they charge advertisers could be very different. Google can use pay per click while amazon might be able to just charge flat rates, because they know that the people whom they target ARE buyers of this particular subject matter. There is significantly more confidence in amazons target group. But the volume will be much lower. Google will never go away simply because they have volume. So If I am in the beginning of my sales cycle I am likely going to want to use google because I can get much better exposure. As I become better known I might Switch to Amazon and specialize my custom ads to people who have bought similar products and switch this way.
    So I believe both mediums will compliment each other, like how digital advertising and paper advertising compliment each other to reach people in different ways and different demographics.

    2. The size, reach, and power of Amazon are immense, do you see any problems with the worlds information being controlled for the most part by 3-5 ver y large tech companies including Google, Amazon & Facebook? Why or Why not?

    Yes and no. I believe that information controlled by a select few will have implications towards squashing competition and general extorsion.. However, Unlike major empires, the online world is very insecure. Like being Rome without an army of retaliation. What we will find is that If they lord their power over people, people will not settle. Hacker groups have existed for as long as computers have existed, and they will not go away or remain silent in the wake of oppression online. I believe that regular people have a better arsenal to fight against online oppression than ever before and that this will help keep giants in check. It is not until the government is no longer a facilitator of this exchange that I would be worried, When companies can use force, well, then they are just the new government.
    In terms of what our info will be used for? Or if this will increase the wage gap? I don’t think so. At a certain point, Companies will need to be advocates for us, because we are the ones that finance their operations. It will likely evolve into a symbiotic relationship between consumers and giants.

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  26. MUSKAAN WALIA

    I do think that Amazon can beat Google in its ability to target customers for advertisers because they have information that Google does not. Amazon is aware of where people live and even the company of their credit cards. It also has access to medical information and baby registries. This information alone can give a marketer more than enough information on what to target what household with. Since they also use cookies to track you and other sites, they can figure out a lot about an individual through their searches and algorithms.
    I do see a huge problem with the world’s information being controlled by 3-5 large tech companies. First of all, I think it is a huge breech of privacy how much these companies know about their consumers. It makes me question everything I search up on the net and makes me uncomfortable. I also think if these companies control so much that other smaller companies will easily go out of business because they will not be able to target their customers the way these companies can. Local businesses will go bankrupt and we will not have the same variety we do today due to these online superpowers. People will lose jobs and privacy will not exist anymore. I also think the enjoyment of going and buying things in person will not be something regular anymore. Instead everyone will have to buy everything online and this will eventually become a hurdle between generations.

    Reply
  27. Tyson Hoskins

    Personally, I don’t think that Amazon will be able to out google, Google in its ability to target customers for advertisers. I understand Amazon has had extremely large growth over the years. In fact, Amazon has a higher valuation on the stock market compared to Google. With that being said I personally use google every single day multiple times a day for a variety of things. I have used Amazon a handful of times in the past but no were near as much as Google. Google has the ability to target customers through advertisements because of the larger quantity of traffic. Amazon’s advertisements may be more efficient as those browsing through the website are looking to make a purchase. Although this is my personal opinion, I could really see it going either way due to the exponential growth of Amazon in the last few years.
    There are certainly potential problems that could arise from these large tech companies who hold most of the world’s information. These problems are related to security and release of personal information. As we watched in class & I experienced this personally as I had a Sony device, in 2014 a hacker group called Guardians of Peace hacked Sony and released confidential information. In the market, Sony is valued at much higher than companies such as Facebook, Amazon and Google. With that being said there is risk with everything. I personally feel comfortable allowing a few large tech companies to have access to the information that they do because they’d have better data protection than smaller companies.

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  28. Allissa Marchand

    1) Amazon is a major competitor against Google but dont think they will be able to out Google in its ability to reach and target customers based on their preferences. Personally I probably use google at least 5 times a day for various reasons and they have access and algorithms to everything I am searching for. If I online shop, 2 seconds later it will pop up all over google and other platforms. They have their hands in every outlet so to speak and will be hard to beat with the amount of data they are receiving daily. Amazon is becoming similar to Google but are different because Google is a search engine that is probably used more often that online shopping. If you are on Amazon 5 times a day like google you probably have a major issue.
    2) I see no problem with that at all, they are all pioneers in their own way and have created brands that are known globally. Each of these companies have worked incredibly hard to get where they are and have put in the time and effort to make these names so powerful in our world. Just because most is controlled by these companies does not mean that every company isn’t mining your data as well. It is unfortunately part of our world and we either need to embrace it or cut ties with technology and that will never happen. Our data and information is out there and is being used for a profit and some may see problems with that but it will never change anything so it is something that is part of our world. scary or not. It is better that our information is stored with well known, reputable companies as a pose to sketchy ones in my opinion.

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  29. Cal Moskalyk-Walker

    I believe that Amazons rapid growth will continue long into the future and will likely surpass googles ability to target consumers. I am a users of Amazon and they certainly do a great job in promoting the products that I am interested buying based on my past purchases. I don’t think that googles opportunities as a search engine will continue to grow at the same way Amazons will. Amazon really has become a one stop shop for almost anything imaginable and always at the most completive price. Amazon is similar to Walmart in that respect but on a far broader scale and with less cost as they do not have a store front. I don’t think google will ever lose its place in terms of finding information about products and businesses, but they would have the same revenue compared to that of amazon because they won’t be selling the same quantity of products that amazon will. I think that is why we see google launching their own tech products now; to increase their revenue. It is certainly a difficult question to answer; if 3-5 companies should have control over the worlds information. I think that it would certainly be a bad idea to have only one company controlling all of the information and having a monopoly in a sense. It is kind of an Erie thought to think that all of our online activities could be stored in one singular data base. I think that governments would have interest, and some what of an obligation, to intervene before that happened.

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  30. Julissa Rist

    This type of targeting sounds more like FB than it does google. Google is still focused on providing relevant information, which includes information on companies and products. FB and Amazon are focused on increasing sales by providing relevant products that they want you to click on.
    This information is already being controlled by these companies. They are working very hard to make sure that the information that we see is palatable. FB especially is sketchy as f* regarding their ethics and censorship policies. A podcast produced by radio lab in 2018 titled, “Post no evil” investigated the design of FBs censorship rulebook. What they found was a haphazard compilation of guidelines without clear logic that was driven mostly by customer complaints. Because there is no intentional design with an ethical framework built-in, there is so much risk of infringing on free speech, and completely burying posts about current events that are inconvenient or unpleasant to see.
    The information that is presented by these major corporations will become an exaggerated version of selective perception. We have already seen how this bias can come into play with concepts like the “algorithms of oppression” that show biased results that continue to perpetuate stereotypes of race and gender. They will cater their messages to their shareholders and to those that provide the most revenue. And historically, that has been the white male Americans that we refer to as top-level management. Unless they become more aware of the ways in which their systems are biased, and care enough to hold themselves to a higher standard that might hurt their bottom line or provide equal opportunity to minority groups, it will become more of an oligopoly controlling the information that is provided.
    https://www.wnycstudios.org/podcasts/radiolab/articles/post-no-evil

    Reply
  31. Carter Potts

    1. I think that Amazon has already “out googled, Google”. Google has highly accurate algorithms for advertising and search results, but Amazon has lots of product information that Google does not. Google knows what I search for, for example if I am in the market for a new laptop, so it shows ads for laptop retailers and brands. However, it doesn’t know when to stop showing those ads. Amazon knows when I have bought a laptop, and instead of showing me ads for laptops, it will begin showing ads for protective laptop cases that fit the model I just purchased. Even if I don’t buy the product directly from Amazon, because so many product companies advertise with Amazon and share their data.

    2. I do not see this being an issue. I would rather have my data stored by large companies with high security than smaller companies with less strict security regulations. While both large and small companies are motivated to turn a profit, the larger companies are at a greater risk of facing legal concerns, so they will put more effort into data protection. They also want to maintain a competitive advantage, so they are unlikely to sell the sensitive information.

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  32. Jamie Huynh

    1. No, I don’t think Amazon will be able to out google, google. I just do not see that happening, as google is a tool that can help businesses find out what their consumers want. If google didn’t exist, maybe? I would say then will be a time where Amazon can dominate that area with advertisements and what not. When consumers want to make a purchase or find out where to buy an item, they usually go to the store website or even use google in order to find the nearest store or location that can carry their specific product or service. People won’t be going to amazon if they are seeking a tire change. They will most likely use google in order to help identify the information they look for.

    2. Yes, I see many problems with the world’s information being controlled by large tech companies. When only 3-5 companies dominate that market with all the information and resources available to them. It just depends, will these organizations be ethical and use this information in order for the greater good. We should still be very skeptical with how our information is still being used, and who is to say that our information being held by these companies won’t be compromised by hackers or a foreign company? These are the types of questions we need to ask ourselves when we devote so much of ourselves to an organization that only cares about the information, we give them.

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  33. Joseph Ogunleye

    1. I am not sure if they can “out” Google but they for sure have an advantage. Amazon has the advantage of knowing what consumers are buying with their amazon accounts, therefore they can better target their customers for specific services. They also have the advantage of having Amazon prime music, Amazon Prime TV and the other service they add on top of the online shopping site. The reason I say Amazon can fully “out” Google, is because Google still has people search history which can also be very beneficial when ad targeting, also because people use Google way more than they use Amazon. In addition to that, although Amazon has a lot of products to offer, they don’t offer any luxury items like Louis Vuitton wallets, so if I wanted to buy one I would for sure Google it oppose to searching for it on Amazon, which would lead to more ads on luxury/designer goods.

    2. I do see problems with most of the world’s information being controlled by these 3-5 tech companies because that basically means the security and online presence of me and many others relies on how these companies use and protect that information. This would also lead to many hackers wanting to target these major companies because of the information they hold, and I find that very scary to think about. Although their goals are to provide the best service they can, it is also very dangerous for people who are constantly on social media or online shopping.

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  34. Jameel Somani

    1. I do believe that amazon will be able to out to google for two main reason. One being their growth and how much they have been able to expand the company into more than just shopping like streaming music and video, to the line of smart products, e-book service and grocery service just to name a few. If they didn’t do a good job personalizing and targeting their consumer market they would not be in the position they are in today. The other reason i believe that amazon will surpass google is that the sheer amount of important information we are just willing to give them is crazy when you think about it. From personal information location for delivery, credit card information and a database that they can build on based on consumer shopping patterns.
    2. I do feel that the pros outweigh the cons of three to five companies holding a big chunk of the worlds information. One being that we as individuals are more than likely are willing to give up personal to big companies to have service provided because for the most part they are credible companies that have built up reputations that have made them seem trustworthy. Also this allows for information to not to end up in the hands of the smaller companies that you have less of a understating about that could potentially do harm with that information affecting you in the long run. This power is ultimately about providing the best service from the credible people with the knowledge and expertise

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  35. Reena

    I think Amazon will out google in its ability to target customers. Amazon and online shopping are used interchangeably in the present day. Amazon has a huge user base to attract target customers to the advertisements. Both, Google and Amazon, are user-friendly but amazon has positioned itself to the target customers’ as being the epitome of online shopping and e-commerce. Unless Google comes up with a super creative idea, Amazon will continue to grow and might out Google.
    Yes! it is quite scary that these tech companies have a constant eye on you. We rely heavily on these firms to perform day to day activities which is being tracked constantly. It freaks me out that one simple google search leads to an attack of ads on your Facebook or Instagram. Even though these advertisements have made our tasks simpler and easier, I think our privacy is at risk.

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    1. Rachael

      I believe both Amazon and Google play different roles in ads, and that’s why I don’t think they can out each other although Amazon has come a long way and it keeps bringing better methods. Also google is more focused on providing broad algorithms which are very useful why Amazon focuses on consumers and their wants. Furthermore not everybody uses Amazon so it wouldn’t be as accurate as Google. With that being said Amazon is growing at a very high increasing rate but I don’t think I would compare this two in that sense.
      I mean it’s very scary knowing that we don’t have as much privacy anymore but at the same time at least it’s more of the professional companies that have my data since they would be more careful of what they put out there since everybody is watching.

      Reply
  36. Trevor Sampson

    1. Amazon and Google both target customers in similar ways, and are both the top competitors in its industry. Both, huge growing companies, make it hard for me to predict whether or not Amazon and out Google. Although it is hard to predict, I wouldnt be surprised if Amazon does out Google because of their driving forces behind them-customer service, pricing systems, and the easy and efficient ways of customers being able to find what they want.
    2. I think there are benefits and drawbacks of 3-5 large tech companies controlling most information, but one of the most important outcomes is that this way there are less small companies that will hold all this information that could potentially use it in the wrong way. A negative effect of this could arise because the 3-5 businesses form an oligopoly kind of mentality which give these companies the upper hand which makes it easier for them to abuse there position.

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  37. Shairin Bhanji

    1. In recent years, the vast increase in technology has led to an increase in competition. Firms that were market giants are now facing threats from other upcoming firms. In the case of Amazon, it is clearly seen that if Amazon keeps up what it is doing and strengthen its strategy there is no doubt that it can out beat google in terms of targeting customers for advertising. The most important concept here is “BIG DATA”. Bog Data enables firms like Amazon to get more information and analyze the trends the consumers are using to shop. This is also seen in the article where financial companies are using information form Amazon to target individuals who purchased financial books or physical therapy centers getting hands on data on individuals who have purchased knee braces. If google is not careful in maintaining its dominance in the market, Amazon can easily out google in this specific market niche of target advertising.

    2. The use of Big Data to have access to a more target audience is not uncommon. Companies that use this platform create a better chance at making sales from these techniques than a billboard in a hot spot of town would make as the advertisement would be more targeted to the individual needs. For instance I had recently been looking for baby products for my new nephew and since then I have been getting advertisements for baby clothes and accessories on different social media platforms. Even my instagram shows be posts related to babies. This is a live example of Big Data in action. The major problem with this is that there is a huge concern for privacy. The information that is collected on an individual can be used in different forms without the awareness or consent of that person. The 3 or 5 companies that control this data have the power to influence an individual’s mind and interest and this can be easily used to manipulate them if the data is being used in the wrong hands.

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  38. Temara Ebelher

    1. After reading this article I truly do believe Amazon will out google. It may sound impossible to out google because google is such a huge company; however, Amazon is growing very quickly and becoming more advanced. Amazon provides customers with Amazon music, video, and buying pretty much whatever they want on the internet. As soon as you look something up on Amazon and then you go onto Instagram or Facebook and an Amazon ad pops up about an item you recently have just looked up. If you decided to hold off on buying the item this ad will encourage you to go back and purchase this item. Whereas, you barely see google ads pop up. The ads were targeted to these customers because Amazon gathers up information about their customers. A couple years ago Amazon was when I started hearing about amazon and eventually I decided to purchase an item because I heard about great experiences customers had, and now I use Amazon often.
    2. There may be both problems and benefit from having only three to five of the largest companies control all of the world’s information. The benefits could help prevent small companies get information they should not have access to such as personal information. The negative effects could be that the few large companies that do have control over the information may abuse using this information because with them having access to all your personal information they could use this information unethically because they do not have our permission to use our information the way they want to.

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  39. Sareena Kassam

    I think that Amazon can come pretty close to outing Google but I don’t think that they can surpass Google because Google has been around for a very long time and is probably one of the main search engines and it is very popular amongst any individual in the whole world. It also has a great ability to target customers. It is fair that Amazon knows the whereabouts of people that buy from Amazon; however, Google is the type of web browser which can track which websites you are visiting and during your next search on Google, can provide you with the items that you were previously looking for. Amazon has the same similarities but can provide a more precise search through the website. Through personal experience however, I found that Google has kept more up to date information about what I search or what I do to a point where I feel a constant need to do any research or shop in a private tab. Amazon does something similar but I don’t feel overwhelmed by the information it provides. I do see many ads that correspond to my needs by I don’t feel bombarded.
    I think that there are positive, and negatives of the information being controlled by the tech companies. At times, we feel that there needs to be an easy way to search for things and that is what Google, Facebook, and Amazon provide. At other times however, we feel like our privacy is invaded. I think that if the tech companies kept the tracking of information limited and not overwhelm its customers then the customers may be relieved that everything that they do on the internet is not being tracked. I personally feel that controlling information is positive only if it is not being used against us or is not harming us.

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  40. Sirhaan Bhanji

    Google and Amazon, great competitors, both target customers in a fairly similar way, by the use of cookies to help businesses understand what kind of websites and data users work with. While both these companies may be efficient in their own way, it is difficult to predict if Amazon will beat Google in targeting customers. The technology is out there and in order to gain competitive advantage, companies would need to use the technology accordingly. In the case for Amazon, they have competitive advantage in terms of gathering customer information, the article explains that Amazon knows what people search and buy, and even know where customers live as they put in their delivery addresses. This way they can send targeted ads and coupons to their targeted customers.

    Well it depends on how the information is used by these companies. There are advantages, disadvantages, and safety concerns related to privacy issues. If the data is used in a way to target ads for customers, reaching more customers and increasing awareness then it is fine. However, we watched the presidential elections video and how data was manipulated to ensure that the targeted President won is a bit terrifying because our private information can be used to manipulate our decision making. There is also a concern on how safe our data is. Our data may be sold to other companies; hackers might get their hands on personal data and threaten individuals for money. Therefore, there is a bit of a scare knowing that data is out there, however if companies find a way to keep it safe and use it for positive purposes stated above.

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  41. Daniel Adams

    1) I definitely think in the next couple years Amazon can continue to compete with google but its difficult to say if they can “out google” on its ability to target customers for advertisers. Both companies are chasing the same information, but Amazon seems to have a more direct path to that information. Amazon directly knows a lot more information where it seems Google must analyze your searches a bit more. Amazon being able to see your purchases has a huge advantage over google. If you buy a new phone off amazon, amazon can instantly start advertising perhaps a case to you. Where google might not know if you bought the phone and keep targeting phone ads when you’ve already made up your mind. In terms of user information, I would guess more people are using google than Amazon when talking worldwide giving google the advantage still.
    2) It is somewhat concerning knows 3-5 large tech companies have access to some much private information. I think the thought of it among people though is because they don’t physically see these corporations taking this information they don’t really care. It’s becoming the norm for all of us to know that corporations have this type of knowledge about us. Its like if a child asks why Amazon knows our personality in such detail, you just tell them “well that’s just how it is”. Its something I think well all must get use to whether we like it or not because its going to continue and we don’t have a choice.

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  42. Lauren Evans

    1. Its tricky because google is such a huge search engine. When you look up something you usually use the verb google, no matter one engine you may use. You rarely hear, “let me yahoo this, let me duck duck go this”. You don’t have to use google to look up things, and they are just a search engine company at this point, which is why I think amazon has them beat. I wouldn’t be surprised if amazon came out with their own search engine at one point in the next 5-10 years. Amazon has become such a huge part of life, from prime video, amazon grocery store, prime music, and amazon prime in general. Entertainment, food, and supplies are all elements of an average person’s day. With continued innovation amazon could out google google easy in the next decade
    2. Honestly, as far as I know, with my current knowledge of the companies I would have to say no. Its almost for convenient that it is centralized within these few companies. If everything I do online can be found in 3 or less places, that makes my life easier. Some may argue that it takes away jobs from smaller companies (Yahoo for example), but I disagree. The more people using these companies, the more staffing is needed to keep up with the demand Amazon has created thousands of jobs in the last two decades, and the number keep growing. The only problem I see, which is also kinda big is diversity.

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  43. Erin Collison

    1. The two companies have always have quite a bit of rivalry, but I think it is very possible for Amazon to be able to out Google. They are neck and neck right now, with studies done that prove roughly 50% of respondents would choose one or the other. Amazon has built one of the best customer experiences, with the quickest service and most efficient pricing systems. Amazon also caught on to the fact that consumers always want to find the product they are looking for with ease. Amazon uses special systems that makes sure that each item a consumer wants is in stock and easily accessible.

    2. Yes, I can see some long term negative effects on having the worlds information being controlled by large tech companies. We can already see issues with these companies using big data for exploitation and target advertising. It does not seem totally ethical that our information is being used when we have not given our permission. I also could see possible price increases as large tech companies take over. Initially, these large companies will decrease their prices, so more and more consumers will shop on them. This will leave local or smaller business to broke, so they will go under. Once all that is left is the large companies, they will jack up their prices.

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  44. Cassidy Read

    After reading this article I do believe that Amazon will be able to out Google in its ability to target customers for advertisers. This is due to the fact that Amazon has immense access to data on hundreds of thousands of people who are buying, looking, and comparing products that are available on their site. As a user of Amazon, I am aware that they are tracking my purchases and buying habits and therefore it makes sense, as stated in the article, that the company knows better than anyone a consumers’ online buying habits. For people looking to advertise, this is a dream come true as they are all about knowing WHO bought WHAT and WHY and WHEN to better understand how and when to advertise for certain products and services. Amazon is a great resource for advertisers as it allows these companies to track and analyze when the best times are to release an ad that would generate the most revenue based on the buying patterns of their target audience. For these reasons Amazon has become a leading company in regard to the revenue generated from its advertising business, where famous brands such as Nike and IBM are falling short. This makes sense as although they are well-known companies Amazon holds the advantage of selling products of all shapes, sizes, and varieties which generate a much better understanding of the buying patterns for a variety of different target demographics whether that is seniors, athletes or students. Another reason advertiser are so willing to partner with Amazon is due to the fact that since they have such a wide range of products for sale they are able to section off target groups, such as those that have bought a knee brace within the last few months, to then advertise for local physiotherapy offices whom are in search of new clients. The power of Amazon is immense and yet everyday users do not realize the information they are providing Amazon is being used all the time in the hopes to generate more revenue or to attract another company hoping to advertise with Amazon based on the data that they are able of collecting. When thinking about the capabilities of Amazon, Google, and Facebook put together it can be frightening to think they have access to our credit cards, buying habits, likes, dislikes, and our personal family demographic at the click of a button. Although they have access to this information the thought of them controlling such a large part of our lives is crazy to think about, however; it will not stop people from using these services which, at the end of the day, is why they are so successful.

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  45. Jordan Karpuk

    1. I do think that Amazon can out Google in its ability to target customers for advertisers based on having the ability to find who buys what off of their site. An example of this in the article being “physical therapy centers wanted new patients, it aimed online ads at people near its offices who had bought knee braces recently on Amazon”. This quote shows that Amazon arguably has an upper hand on being able to direct online ads to consumers that they pick based off of the criteria and content of advertisements. Utilizing Amazon’s straightforward database allows them to easily determine the consumers they’re going to target.

    2. Having the worlds information being controlled for the most part by only 3 to 5 extremely large tech companies could be good or bad. Starting with the good, because there is so few companies having access to this, there is a lesser chance of your own personal information of being released or sold to a smaller outsider company. Switching to the bad, even though there are very few companies, they are extremely large companies. While you know the worlds information is being controlled by them, because they’re large tech companies there’s a chance they are able to get access to all of your personal information and you don’t know where it is or what it’s being used for in that tech company. Along with this, advertisers have run long, targeted campaigns through Amazon, you don’t know if they did the same thing through the other large companies as well.

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  46. Jordan Wright

    Q1: so I should start off and say that I have a biased because I personally on stock of Amazon as well as my parents. I believe Amazon has grown substantially in the past 10 years they really do have a lot of trust from their customers and a lot of data this data points to the ability to predict what you are going to buy next from them I’ve seen it first hand. Google is such a huge in well-established business and they do seem to have an eye everywhere I don’t think they are going anywhere anytime soon. Ultimately If Amazon out paces google it will not be due to targeting google just due to building a better boat.

    Q2: obviously there are political concerns with the future world being run by big business I believe it’s something that we can’t necessarily stop and I also believe that these big businesses that are run by extraordinary men and women why are they any different than our current political offices? They could very well have the same or better ideas for our future.

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  47. Abdul Wahab

    I don’t think Amazon can out google yet in terms of reach. It’s a big competitor but about 80% of the internet search goes through Google and as a result, they can target more people with their ads. I don’t see any problem with the world’s information being controlled for the most part by 3-5 very large tech companies as the laws would evolve in order to eliminate any privacy infringement risks.

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