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Amazon's high-margin advertising business is growing exponentially, threatening Google and traditional retail media.
Gabbi Stubbs · Venture InsightsPeriod: January 20188 min read
Last updated
Forecast Amazon Net US Digital Ad Revenue (2019)
Share of Amazon Ad Spend from Sponsored Product Ads (2017)
This report analyses the rapid expansion of Amazon's advertising business, which generated US$1.12 billion in 2017. While currently accounting for only 2% of Amazon's total revenue, the segment's year-on-year growth has exceeded 45% for two consecutive years. The analysis explores how Amazon's unique access to explicit purchase data positions it as a formidable competitor to Google and Facebook, particularly as it scales its presence in the Australian media market and expands into new formats like voice and TV.
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