Known as a formidable e-tailer, Amazon continually demonstrates repeatable success across industries. Advertising will be no exception.
Advertising may only account for 2 per cent of all Amazon’s revenue currently, however, year-on-year growth for the past two years has exceeded 45 per cent and is growing at a rate faster than Amazon’s other revenue line items.
Amazon’s advertising ambitions will only increase; expanding beyond existing formats to offsite advertising and new platforms taking traditional channels head-on.
Amazon is likely to have a three-fold impact on the Australian media market; competing as an advertising platform, reduce advertising from the retail sector and creating content rights tension.