Amazon's advertising business could reach $5 billion in revenue in 2018
Michael Seto/Business Insider
The firm estimates Amazon's advertising business will grow by an average annual rate of 37% between 2016 and 2018.Morgan Stanley analyst Brian Nowak said in the note: "We believe a majority of these ad dollars will come from large brands (Tide, Pampers, Energizer, etc) rather than individual third party sellers given brands' superior unit economics and ability to drive repeat purchases."
Nowak didn't consider Amazon's ad business a threat to Google's search business, saying keyword search was growing more than product searches.Sir Martin Sorrell, head of WPP, the biggest ad agency in the world, said on his company's fourth quarter earnings call that Amazon was a significant threat to Google's search business.
- TTD approves Rs 2,938-crore budget for 2021-22
- Wholesale growth expected to continue for tractors, passenger vehicles and two-wheelers, says equity research firm Emkay
- Centre finalises One District One Focus Product to promote in cluster approach
- A Mumbai-based EV startup launched the cheapest electric car with a 200 km range
- HP's worldwide shipments grow 5.6% in fourth quarter of 2020, says IDC