As a result it looks like marketers are seeing the benefit of advertising on Amazon. That is evidenced by their continued ad revenue growth. eMarketer predicts that the growth will continue as it rapidly approaches the $1 billion per year mark (eMarketer predicts that the US market alone (which last year was the source of about 74% of the company’s ad revenue) will get to about $1.1 billion in 2015).
So what is the source of all this ad revenue?
eMarketer estimates the bulk of Amazon’s ad revenues come from ads placed in or near search results that appear when a person searches Amazon for a product. The company also earns substantial revenues from display ads served on Amazon-owned sites and through its ad network.
We spend a lot of time talking about Google AdWords and advertising on social media outlets but wouldn’t it make sense (for the right products, of course) to be advertising where people are most certainly buying?
Amazon has already developed its targeting technology, along with creating its own demand-side platform (DSP) to improve targeting of Amazon buyers on other web properties and devices like Kindles—something that may help position them as a more attractive site for both brand and direct response advertisers.
With ad dollars being more and more precious and advertisers demanding more and more accountability for attribution to the bottom line, it seems Amazon is a smart choice for the right advertisers. What do you think?