Amazon's Advertising Revenues Increase!

  Amazon's Advertising Revenues Increase! Advertising Revenue Used To Be The Domain Of Alphabet And Facebook, But Now Amazon Has Entered Their Playground. Alphabet GOOG (NASDAQ) $2.527,04 +13,11 (+%0,52) and Facebook  FB (NASDAQ) $336,77 +5,51 (+%1,66) have been number one and second in US digital ad revenue for several years. To this ad dominance, Amazon AMZN (NASDAQ) $3.383,87 +37,04 (+%1,11) comes as a huge competitor. Online retail giant Amazon is not hard at all to dominate the digital advertising space thanks to its subscriber potential.

Fighting For Your Attention

Amazon reported ad revenue in the other business segment, bringing its ad revenue 53,5 % to $21,5 billion in 2020, from $14 billion in 2019. Compare that to Facebook's $86 billion in 2020 revenue (which comes almost entirely from ads), of course Amazon's ad revenue lags behind. Facebook's ad revenue has been on the decline since 2016. Despite everything, it seems that Amazon is speeding up while Facebook is slowing down. Amazon's Digital Advertising Growth is Fueled by Two Sources -Search and display ads

Advertising Revenue Used To Be The Domain Of Alphabet And Facebook, But Now Amazon Has Entered Their Playground.

Advertising Unit.

When consumers search for a product on the Amazon website, businesses want their products to appear first. It should be noted that Amazon is the only retailer whose website is featured on the 10 most visited websites. That's why the Amazon.com website is so valuable to marketers.

Conclusion For Investors

It appears that advertising can add a lucrative source of income and profits to Amazon. The online retail giant, which stands out with its investment in customer experience, will attract more customers if it can maintain its growth in advertising revenue. And to fuel the cycle, it will raise funds that can help fund more investment in customer experience. As a result of marketers directing ads to Amazon, it is clearly seen that Facebook and other competitors will be in trouble. Every company that is ahead in advertising feels Amazon's breath on their neck, and Amazon is catching up with them fast. Advertising Revenue Used To Be The Domain Of Alphabet And Facebook, But Now Amazon Has Entered Their Playground.  

Source: The Motley Fool

 

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