With annual revenue of $24.4 billion, Amazon will become one of the world's largest advertisers

According to foreign media reports, in addition to being an e-commerce giant, Amazon is gradually becoming one of the world's largest advertisers.

Amazon's financial report shows that in the third quarter ending September 30 , Amazon 's advertising department had revenue of US$8.1 billion , an increase of 49% over the same period last year .

According to GroupM, global advertising spending will grow 22.5% this year to $763 billion. This is the second upward revision since GroupM first gave its valuation in December 2020. In the early days of the outbreak , many businesses were forced to close . This year , as the epidemic control was relaxed, businesses around the world reopened on a large scale. In order to promote, companies' advertising spending has increased significantly .

It is worth noting that by 2021, digital advertising will account for 64.4% of total advertising spending, up from 60.5% in 2020 and 52.1% in 2019. The increase in digital advertising market share is not surprising. In most cases, marketers can more effectively measure the effectiveness of online advertising, such as ad views and conversion rates, while offline advertising is difficult to monitor.

According to eMarketer 's forecast, Amazon's digital advertising revenue in the United States will reach US$24.47 billion in 2021, a year-on-year increase of 55.5%, accounting for 11.6 % of the US digital advertising market . Compared with last year's growth rate of 52.5%, the growth rate has not slowed down.

eMarketer predicts that Amazon 's advertising business will account for 14.6% of the US digital advertising market in 2023 , further narrowing the gap with Google and Facebook. In retail media, Amazon is the absolute leader, and it is expected that in 2021, Amazon will account for 77.7% of the market share.

Amazon's advertising revenue has almost doubled from $4.2 billion to $8.1 billion since the second quarter of 2020. As the number of Amazon users continues to expand , Amazon is becoming more and more attractive to companies as an advertising platform .

Chief Financial Officer Brian Olsavsky said on the company's third-quarter conference call that Amazon's advertising products have seen strong growth because Amazon's ads are a good way to help sellers connect with consumers, and users can make purchases just by clicking on the ads.

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