Amazon has dipped into yet another market: advertising.

All Things Digital reported this morning that Amazon will begin buying internet ad space then reselling to marketers at a premium. Amazon’s advantage is their vast database of Amazon.com customer data, which allows advertisers to better target their audiences based on buying habits.

San Francisco-based startup Triggit has been tapped to help with the project. Triggit has developed a real-time platform allowing media buyers to instantly buy and place ads online.

Gary Meyers, president of Kirkland-based Hodgson/Meyers, a business-to-business ad agency, said Amazon’s venture could be the “holy grail” of targeted advertising.

In contrast to other forms of targeted web ads, which are based off of browsing history, Amazon’s product will integrate buying data. If a buyer purchases a golf club, for example, they are more likely to purchase more golf equipment, thus a higher return on investment.

“You’re now known as a buyer of golf equipment and you’ll be served ads no matter where you go,” he said in a phone interview today.

Privacy is of course a concern. Retargeting has become a common web advertising practice, and according to the All Things Digital story, the tracking cookies can, theoretically, keep buyers anonymous because they track browsers, not individuals.

Chris Goetze, interactive director at Hodgson/Meyers, said retargeting is generally based on patterns, not purchasing history like Amazon has proposed.

John Rubino, president of Seattle's GreenRubino, compares Amazon's move into a new marketplace to Google's quick growth.

"It's just a smart way for Amazon to monetize the data set they have," Rubino said. "I totally understand the privacy hawks, but it would be crazy for them to not monetize it."

Meyers said he thinks the new venture will prove profitable for Amazon.

“In terms of targeting, it’s pretty potent,” Meyers said. “If they can make all of that work, you can see the potential in it.”