GOOGL - Amazon's Ad Business Will Dominate the 2020s
Amazon 's (NASDAQ: AMZN) ad business might've been overshadowed in 2020 amid the boom in e-commerce that occurred as consumers stayed home and did more shopping online. But the ads people see on Amazon's marketplace, Twitch, and its Fire TV platform grew right alongside its retail operations. Through the first nine months of 2020, Amazon's Other revenue line item, which consists primarily of advertising, increased 45%.
That strength is expected to continue into the middle of the decade. Advertisers expect to spend larger and larger percentages of their ad budgets on Amazon ads over the next couple of years, according to a new survey from Cowen. As a result, Amazon will continue taking market share from competitors like Facebook (NASDAQ: FB) and Alphabet 's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google.
Image source: Amazon.
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Amazon's Ad Business Will Dominate the 2020s