The global digital ad spends for Amazon is projected to grow at 8% by 2023.
Amazon’s rapidly growing ad tech business could make the e-commerce platform an advertising giant along with Google and Facebook. This piece says that Amazon’s growth is likely to affect marketers, agencies and other ad-tech vendors.
According to a Forrester report, Amazon doesn’t necessarily “need” its ad business, as ad sales are only 4% of Amazon’s revenue. But, Amazon’s ad business could provide media and ad agencies with another significant digital platform for their ad campaigns.
Amazon’s ad business which accounts for 47% of U.S. e-commerce sales, can provide ad-tech agencies with an opportunity to develop expertise on selling on the platform. Agencies can further expand their Amazon-related businesses by developing consulting expertise for other e-commerce retailers like Walmart.
[4 minute read]