Amazon Ad Business projections are increasing. According to marketing company EMarketer, Amazon (AMZN US) market-share is increasing and is cannibalizing on both Google (GOOG US) and Facebook (FB US). Continued monitoring of this development is important as Ad business is large revenue stream.
Askbrokers has been following the Amazon (AMZN US) story with regards to their inroads into Advertising business since the first news hit the tape. The initial Amazon ad launch was covered here, and later followed up with how they are filling their search results with sponsored ads.
Today market research firm Emarketer, announced that they expected Amazon to be #3 in ad revenues, just behind Google (GOOG US) and Facebook (FB US). CNBC writes;
EMarketer revised their annual U.S. digital advertising estimates, and now projects Amazon will rake in $4.61 billion in 2018. Previously, it thought the company was only going to make $2.89 billion.
This increase is something the market will start looking at closer since the advertising business is presently a very small part of revenues at Amazon. The ad business has substantial potential for growing large. According to WSJ;
EMarketer estimated Amazon will have a market share of 4.15%, up from its earlier estimate in March that the company’s share would be 2.7%. The research firm cited Amazon’s “strong organic growth in ad revenues” for the adjusted forecast
Summary: Amazon ad business projections are increasing. This is not only good for Amazon, but could potentially be a potential risk for both Google and Facebook, as their sites unlike Amazon don’t offer ad buyers any purchase data. Be sure to monitor the development closely as dynamics will affect all 3 companies.
