For now, the most expensive kind of ad deals are available on a limited basis, depending on the content and how quickly you can reach them (on a budget). This makes them more valuable to advertisers than paying for delivery networks: they can often buy ad time to reach more people (or both people and advertisers) at less cost.:
Amazon now gets 50% of its total ad revenue from third-party services. Over the past two years, Amazon has already taken a $16.8 billion equity interest in Amazon.com. Its owned 49% of Amazon just over 1% of the retailer.
The success of Amazon’s advertising strategy in the last three years could have an impact on the ad revenue it is aiming for. Advertisers could lose a good chunk of their ad revenue if ads aren’t able to reach as many people. But if Amazon’s overall strategy continues to work well at getting more people to buy ads online, it could give advertisers a bigger, more substantial chunk of their ad revenue than it did before. But given how much ad revenue Amazon currently gets from third-party services, these revenue would still probably be lower than it was even 12 months agoso it doesnt seem like the amount it was supposed to get is much of a problem.
If Amazon was trying to get 20% of its ad revenue back by 2017, I might be wrong. But even if you can guarantee a steady $30 to $50 an ad campaign, most people will still want to buy ads online.
How good is Amazon advertising?
Amazon’s ad revenue which I have discussed this week has a lot of value. Given its growth strategy, I could be wrong. Amazon’s ad revenues are likely to continue increasing in line with the current trends with digital technology companies such as Google ad search (which also sells advertisements online)but their margins are likely to continue decreasing for the foreseeable future.
Even though Google’s ad campaign, which does deliver a small amount of revenue in the range of about an $200 to $400 per month, is still widely used in U.S. advertisements, there are reasons to believe Google may not continue to have a large influence on ads outside its control. In my opinion, Google ad revenue is likely to continue increasing for the foreseeable future, possibly declining at any given time.
Which brings me to the best case scenario for Amazon’s ad revenue on its own terms: If it were able to generate some additional ad revenue in 2017, its growth, at least in the short term, could be good for all ad agencies.
A key to this is that Amazon has already pulled ahead in advertising with advertisements that have already been downloaded by tens of millions of people. When users click on ads, they tend to pay for them. Some may be able to pay for ads in person, but other ads are likely not. Ads that were purchased on Amazon using their own ad impressions would have been a very expensive way to earn additional ad revenue and advertising revenues at Amazon.
That said, there are three main reasons that are key to how well Amazon’s Ad strategy will work for advertising in 2017:
It is still very much dependent on the number of active users.
It will focus more on what audiences need to keep advertising.
It will be more targeted than others (as Google ad search does). I wouldn’t bet on Amazon being the publisher of ad ad revenue from these three years from now, but also from 2017, because there are enough ads that will need to make it in some additional revenue to fill up and I of a lot of the ad budget to