For big tech companies, online advertising has become a lucrative revenue stream. The e-commerce segment of Amazon is gaining more dollars in recent years than the company could ever imagine. According to recent estimates, the advertising revenue of Amazon is expected to reach 10 billion by the end of the year.
Amazon has also become the top advertiser in the United States. The company spends around 6.9 billion on advertising annually. E-commerce and advertising were not much of a thing for the company but now tables have turned.
As they say for every action there is an equal and opposite reaction. Growth for Amazon will mean a lot for the entire e-commerce industry on the whole. Though there are bigger giants in the ad business like Google and Facebook that enjoy the biggest turnovers in the industry, Amazon will soon live up to the challenge.
Since digital has overtaken conventional advertising, and in most countries, conventional has long become the thing of the past, one of the biggest e-commerce platforms will be extremely aggressive to compete with the competition.
It is too early to compare Amazon with Google and Facebook in terms of revenue. But one thing that Google and Facebook lack is a huge e-commerce platform. The established e-commerce model of Amazon that is recognized all over the world will provide a definite edge to the company in online advertising in the long run.
The company constitutes almost 40% of all e-commerce activity in the united states, and in even some specific categories the percentage is much higher. Facebook and Google are now venturing into the e-commerce ecosystem while Amazon has come this far by the other way round. Will it explore the unchartered territories of some neglected markets around the world, is a question that will decide how proactively the company advances to take a leading position in the digital advertising ecosystem.