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June 05, 2013

Amazon Seeing Increase in Ad Revenues

By Oliver VanDervoort, Contributing Writer

Amazon.com (News - Alert) has long been recognized as the top retailer in the world when it comes to online commerce. Despite the fact that everyone knows the site is a juggernaut, it is always interesting to see just how large of a juggernaut Amazon actually is in the grand scheme of things. But now we can.



Industry analyst eMarketer (News - Alert) recently estimated that the that the site will be bringing in more than $800 million in ad revenue this year alone.

Amazon has so many streams of revenue these days that Reuters (News - Alert) has called the site a “sleeping giant” when it comes to ad revenues. With endeavors like Amazon Prime earning large amounts of profit there has been very litte initiative to tap into the ad market as much as the retailer could.

Competitors like Barnes and Noble, who has taken on Amazon’s Kindle with their own eReader has made the giant retailer rethink their use of ad revenues over the last 18 months. eMarketer has already forecasted that Amazon’s ad revenue will likely come in around $835 million this year. That is a 37 percent jump from the end of 2012 when the company brought in about $610 million.

Industry analysts are saying that ad revenues could eventually be even more profitable than some of the company’s more traditional revenue streams. Wall Street is expected to be paying close attention to the move. The site recently launched eCommerce Ad. These units include a wide swath of different features including customer reviews, coupons and buy buttons that allow users to quickly and easily add products to online carts.

Amazon still earns a good deal of its ad revenues from ads that are placed in search results on the website. These ads pop up when a person is searching for a particular item to buy. While these and other ad revenues are continuing to shoot upwards, eMarketer is claiming that we haven’t seen anything yet. The industry analyst believes that Amazon’s ad revenues will top $1.1 billion by the end of 2015.




Edited by Ashley Caputo
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