e-retailer Amazon set to challenge Google, MS with new ad system

Amazon Inc is planning to develop its own software for placing advertisements online, according to reports today.

The in-house platform is initially planned to replace ads supplied by Google Inc on Amazon's own website; but plans to expand the new system to challenge Google and Microsoft Corp's advertising business in the near future.

Amazon's system would resemble Google's AdWords, and is planned to make it easier for marketers to reach the its users, the newspaper reported the people as saying.

The retailer is also building a tool that would help advertising agencies buy in bulk for thousands of advertisers, the Journal said, citing the people.

Amazon is known as a sleeping giant in the ad industry because it has rich consumer data but has been tentative about using it for a lot of advertising.

The company already has an advertising service it employs chiefly on its own website.

More details are awaited.