Amazon's ad revenue is set to surge in 2018 (AMZN)

pulse

January 12, 2018 4:36 PM

Amazon’s ad revenue could reach $4.5 billion in 2018, a 61% increase from $2.8 billion in 2017

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Amazon’s ad revenue could reach $4.5 billion in 2018, a 61% increase from $2.8 billion in 2017, according toJPMorgan.

Additionally, Amazon’s ad revenue is projected to grow at a compound annual growth rate (CAGR) of 55% in the two years through 2019, to reach $6.6 billion, according to the note.

Here are some of the drivers that could contribute to Amazon’s growing ad business this year:

Prime subscribers will help attract brand ad spend.
Consumer Intelligence Research Partners
Amazon plans on a big digital ad tool push in 2018.
CNBC
Ad giants plan to spend more on Amazon ads.
The Wall Street Journal

But, Amazon is still far behind Google and Facebook in terms of advertising. Google and Facebook generated $61 billion and $27 billion in the first three quarters of 2017, respectively. However, the $4.5 billion figure still positions Amazon well ahead of other companies vying for the third dominant ad spot. For example, Snap generated around $540 million in total revenue — nearly all through advertising — in the first three quarters of 2017.

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