Online sales giant Amazon’s nascent ad business is now on track to generate worth of $10 billion a year in annualized sales. The company announced $2.5 billion in sales from the ‘other’ category that includes its escalating advertising business which soared 123 percent. The number marks an increase of $301 million which is equivalent to 122 percent rise from the previous quarter.
One of the approaching areas of the interests for the e-commerce giant Amazon is advertising. The company has long promoted products on its sites, but the segment came into light during the past several quarters. It is now one of the leading players and it is likely to dominate the cloud computing industry in the coming years.
Amazon Poses challenge to Giants in Advertising Business
Continuous growth from the adverting business by Amazon poses a hindrance to the growth of digital advertising giants such as Facebook and Google. Few leading organizations have reported that most of the advertisers have already started shifting from Google search to ads business of Amazon. Amazon’s ad service is alluring the brands who further want to connect it to its direct customers.
The Amazon business is growing rapidly and it has still very long way to compete with the leading players. Cloud-based voice service is another category in which the company excel. This is evident in the recent launch of its smart speaker Alexa Powered Echo. The company has list of products for promotion at their sites, but this segment has increasingly gained popularity since the last few months. It nascent advertising business is now on track to make worth of $10 billion in the next coming year.