Amazon is pushing advertising for next week’s Prime Day

Amazon is driving brands to increase their advertising on its website for next week’s Prime Day, its annual sales event — potentially giving another boost to a revenue stream that has brought the ecommerce group into competition with Google and Facebook, the dominant forces in digital advertising… With millions of Amazon’s Prime members expected to flock to the site next Monday for discounts on products from Bluetooth speakers to paper towels, analysts say its growing advertising business will be a winner alongside the core retail business… Prime Day, which Amazon created in 2015, has quickly become one of the company’s biggest drivers of sales and of growth in Prime members. More than 100 million people around the world now pay monthly or annual subscriptions for free shipping, streaming video and music and other services… Amazon’s slice of the $100 billion US digital ad market is still very small: 2.7 per cent, or fifth place, this year compared with Google’s 37.2 per cent and Facebook’s 19.6 per cent… Its share is expected to reach 4.5 per cent by 2020, passing Microsoft and Verizon’s Oath to climb to third place, while Google and Facebook are predicted to lose ground. Analysts expect growth to come both within the search, sponsored product and display ads Amazon sells on its own site as well as an expansion of the ads it has begun selling across other websites, using its shopping data to target consumers.
Shannon Bond