Ads have finally taken over amazon just like they did on e-bay a few years back.
Amazon Ads pulled in a whopping revenue of $20Billion in 2020 and could also be one of the most profitable parts of the company currently. Think about it is more than the sales of Snapchat, Twitter, and Pinterest….combined. And it has doubled its ad revenue within the past two years.
The ad revenue is just another drop in the bucket for amazon having generated $385B in total revenue last year. However, most of those sales are from small-scale retail businesses.
Benedict Evans a leading tech analyst estimates that Amazon’s ad division could bring in operational income as high as $13.5B, which is in line with Amazon Cloud Service (AWS).
Well, for me the result isn’t surprising, think about it, ~50% of the online shoppers start their product search in ________(The hint is Amazon). Well, the 50% approximation is estimated by CivicScience.
With all these people Amazon is happy to sell its digital real estate to retailers with the highest bids.
Marketplace Pulse(a research firm) recently has identified that everything that shaded blue on amazon’s website is an ad.
Well to me that’s jarring.
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