Advertising has really taken the lead in the last few years and shows promising growth in the years to come. This highly profitable opportunity was not missed by the e-commerce giant Amazon.com. As their digital ad platform is currently ranked as the third largest in the U.S. alone. Accordingly, to eMarketer, Amazon has been slowly but surely chipping away business form Facebook, and Alphabet attendant Google.
Hitting the $11 Billion Mark:
According to the latest report by eMarketer Amazon’s ad business is growing at rapid speed. In addition, the company is all set to add 50% more to their business in 2019 alone, taking them over $11 billion in total. Amazon does not directly disclose it's ad revenues but it does show under the “others” category. Taking a look at it we can tell, that the company made $10.1 billion last year, and is taking on many large advertising opponents as it moves forward.
Moreover, eMarketer claimed that it's forecast for Amazon’s four-quarter showing great ongoing momentum that will take them to the next level. Other researches show Amazon would hit it's $10.9 billion marks in 2020, but the booming Ad giant is expected to grab 9% of U.S. digital sales in 2019 alone. Which in return will put a dent in Google’s and Facebook’s share. Meaning, that even as their ad revenues grow in dollar terms, they are merely remaining afloat.
eMarketer Forecasting Director Monica Peart said that Amazon offers major benefits to advertisers, as they focus mainly on offering good packages. These packages are direct-to-consumer brands and offer their business on a bustling platform.
Dave Fildes the Director of Relations passed a statement on Amazon’s most recent earnings call and stated that they are working on serving their customers well. Their services are constantly evolving, which includes tools and products that can help customers achieve their goals in different ways. Moreover, in the last few months, Amazon has expanded their sponsor brands placements, these come out as new reports, and easy to use campaign manager features. In addition, the platform offers a great deal more which they hope to add to. Adding opportunities for their users in every possible way.
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