When people think about Amazon, they think about the eCommerce site where they can buy just about anything you can imagine, and have it shipped to your door. For Amazon itself, however, it seems that they are really pushing to become a much more diversified company. Last year, their digital advertising business grew by 60%, and generated $1.7 Billion in revenue.
Looking at the financial reports from Amazon, the digital advertising is still lumped in with ‘other’ income sources. While $1.7 billion is a small part of their current overall company, it is definitely going to be a big part of their future. If they continue to see this type of growth, it will certainly be broken out into its own segment in reporting, and may become a large portion of their income.
Amazon is looking to grow and expand what they are offer to advertisers. One of the ways that they are doing this is by launching a new retargeting product. This new product will be a much more direct competitor to Google, which currently dominates this field.
The new retargeting service is not yet available to use by customers, and a lot is still unknown about how it will be used. Some people expect that Amazon will use their system to power advertising on third party sites (similar to AdSense). Others believe that they will only be offering the retargeting options on ads run on their own properties.
Either way, this could help take their digital ad business to the next level, and even put them to become a more direct competitor to Google and Facebook, which currently dominate the industry.