According to research firm eMarketer Inc., Amazon’s advertising business is expected to reach $3.37 billion this year. 58% more than last year. This will give Amazon a 1.2% share of the global digital advertising market, which is 0.3% higher than last year’s 0.9%.
Amazon’s search advertising business soared in the second quarter
Amazon’s advertising business marketing services company is creating billions of dollars in revenue and is beginning to influence the company’s “gross profits.” Its chief financial officer said: “There are thousands of advertisers who have purchased retailer advertisements, including Amazon’s suppliers, sellers and third-party advertisers, who are using Amazon search ads to promote “brand awareness.” Upgrade.
eMarketer Inc’s report found that the two most popular forms of Amazon retailers are: sponsorship products and headline search ads.
Amazon sponsor product ads accounted for 88% of all search and product details paid advertising spend in the second quarter, an increase from the same period last year. Sponsored product ads are based on keyword-targeted cost-per-click ads that appear on the right, bottom, and product details pages of search results on desktop and mobile devices.
Headline search ads are based on keyword-targeted cost-per-click search ads and appear at the top of the homepage of desktop and mobile search results. Product display ads are designed to drive the sale of products on Amazon’s detail page.
Is Amazon the next big advertising platform?
According to research firm eMarketer Inc, the end result of this growth is Amazon’s advertising business, which is expected to reach $3.37 billion this year, a 58% increase from last year. This number exceeds the expectations of some analysts. Amazon will account for 1.2% of the global digital advertising market, up from 0.9% last year.
The bulk of Amazon’s advertising spending was $2.29 billion or 68.0% for desktop ads. However, Amazon’s mobile advertising business is growing rapidly. Mobile advertising is expected to generate $1.08 billion in revenue this year, up 122% from last year. Amazon will account for 0.6% of the global mobile advertising market, up from 0.3% last year.
At present, Amazon’s advertising revenue in North America is greater than its international advertising revenue, and it maintains a good momentum of rapid growth in both areas.
In order to promote the advertising business faster and better, Amazon is working to improve its advertising tools, launch an automated form of advertising (currently advertisers must also take some manual elements of the tool) and improve their measurement capabilities to make advertisers better understand it. The advantages. In addition, Amazon also believes that unique positioning is the most direct way to show their ads to advertising. ”
As Amazon’s search advertising business continues to grow, it may become the next large advertising platform.