‘Amazon’s advertising business could make twice as much as Snapchat by next year’ – Mashable
Patrick Kulp says, “Amazon dominates online shopping, cloud computing, and now, it has its sights set on advertising.
The online shopping giant has been quietly beefing up its ads business in recent months, and Wall Street is starting to take notice.
An analyst at Morgan Stanley predicted this week that the company could pull in $5 billion in ad revenue by next year. For context, that’s more than twice Snapchat’s forecasted revenue for that year and about half of Twitter’s entire market value at the moment.
That number could swell to $7 billion by 2020, according to the research note. Even so, Amazon would only make up a 4-percent share of the digital ads market, which is dominated by Facebook and Google.
Another analyst at BMO Capitals pegged that number at a slightly more modest $3.5 billion next year. But the bank noted that Facebook and Google should absolutely be nervous about Amazon’s growing clout on their turf”.
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