The rise of the internet is among the greatest changes to the business world and advertising World. As per Trefi’s estimation, Google Advertising Revenue will contribute 83.3% of Alphabet‘s Total Revenue for 2019. On the other hand, social media giant, Facebook In 2021 is projected to generate 94.69 billion U.S. dollars in ad revenues, up from 55.01 billion U.S. dollars in 2018.
The ad business is big. These two big giants are ruling the internet advertising business and now, a new player in ad revenue arises. According to the report by marketing land, Amazon’s booming ad business grew by 40% in 2019. Amazon is steadily building an advertising business that competes with Google and Facebook.Amazon’s ad business is expected to make $17.6 billion in 2020, according to financial services firm Cowen.
Before talking more about Amazon’s ad business let’s talk about how Amazon ad works. It really simple, search directly on the Amazon site, you will be bombarded with sponsored products, and if you like the sponsored product you can actually buy right from the advertized page.
for ex: Do a product search on Amazon, and you’ll likely notice products with a little “sponsored” label. These are “sponsored products,” or keyword-targeted ads that let advertisers promote certain products. And Amazon also has Other ad types and Amazon DSP. There are also video ads, which are pretty self-explanatory.
But Amazon ad business is really limited for only a certain amount of brands that have actual products on Amazon but even though Amazon ad business it was more intense compared to other ad businesses.
The growing numbers of amazon clearly tells amazon is the new player in the ad business revenue.