In an attempt to replicate the successful ad placement system of tech giants such as Facebook and Google, online retail company Amazon is looking at the feasibility of launching its own version of the income-generating system.

According to Wall Street OTC, Amazon can find big profits in this venture since the online shopping retailer has the best data for ad targeting by having the relevant information in their very own database. Tech experts say that data is the main element in delivering effective advertisements, specifically those that contain demographic, personal and psychographic data. Amazon has access to such data, especially from their users and subscribers.

While Facebook collects data from shares and likes and Google from searches, Amazon has the more relevant data with a good collection of what users actually browse and buy online.

The possibility of a new platform for ad placement that will most probably be called "Amazon Sponsored Links" could also offer retailers a good alternative to placing their ads on Facebook or Google. Amazon is familiar with how the system works, as it already allows smaller ad placements on other websites. This new ad system will be an expansion of its already massive operations and would generate even more revenue.

One analyst, Karsten Weide, said that the company could leverage its expertise in consumer behavior online while making the ads more effective. Online marketers would find this a very viable and efficient option, especially when compared to the pre-existing services.

This is not the first time Amazon and Google are competing with their services, as the two online giants have been watching each other's activities for some time now. For example, Amazon recently launched an online storage service, and Google apparently copied the e-commerce business with its own shopping service. Amazon even began to manufacture its own smartphones, making the direct competition more apparent.