According to estimates from eMarketer, media giant Amazon has raked in a whopping $450 million in advertising revenue last year: and it’s expected to go up by another half to $660 by the end of this year. In comparison, Twitter’s advertising service is expected to generate $580 million for themselves from advertising. In the grand scheme of things, advertising is only a small part of the site’s income: it brought in an impressive $61.1 billion in income last year alone, although profits have been hard to come by. The rate of advertising growth for Amazon is significant as it continues to skyrocket in sales.
The majority of these ads come from advertising on its own site, running multiple ads on every Amazon page. In addition, Amazon is selling a massive amount of stock on the site for almost any conceivable interest, so it can reach a massive audience of people across a broad demographic. The biggest generator of ad revenue for Amazon comes from ads placed on search engine result pages, leading to consumers looking for a product on Google right into Amazon to purchase their goods.
Marketers would do well to remember that it’s not just about who views your ads, it’s about their likelihood of purchasing your product. Amazon is clearly scoring well on that axis when people move directly to the sales page from seeing an ad.
Source: Mashable
