Google, Amazon open a $30M ad buy for mobile photo booth rental
Google and Amazon are spending $30 million to buy mobile photo booths at the beginning of the year, part of a $90 million ad buy aimed at boosting the digital billboard market, according to people familiar with the matter.
The ad buys mark the first major step in a major expansion of the advertising industry that has seen big spending by Google and other big brands.
The new hires could boost the overall number of ad units for the mobile billboard business, which has been struggling for years.
Amazon bought photo booths in the U.S. in February for $30,000 each, and it has made big purchases in Canada, including a $12 million ad unit in the second quarter of 2017.
Google bought mobile photo vendors in India in December for $25,000.
The Wall Street, New York Times, and USA Today reported Tuesday that Google is looking to buy the mobile ad units from local companies for $50,000 apiece.
Amazon is also looking to acquire the mobile booths, according.
Amazon will pay $3,000 per mobile photo unit, with the remaining $10,000 paid in advertising credits.
The total number of units Google is buying will be $60 million, according the people familiar.
Google declined to comment on the purchases.
The move could help Google expand its mobile billboard sales, which have been struggling since the advent of the Internet and social media.
Mobile billboards have been in decline since the dot com bubble burst, and ad revenue in the country has been declining.
Advertising spending in China and India is also falling.
But China is expected to account for about 90% of the country’s ad revenue by the end of 2020, according a Reuters forecast published last month.
Google and its local rivals, Amazon and Facebook, are betting on their growing ad sales to help them compete with the growing number of social media users.