Data turns Amazon into a $1bn advertising business

Amazon: ad revenue to rise 29%
Amazon: ad revenue to rise 29%

Amazon's advertising sales will surpass $1bn this year, as the company increasingly targets brand advertisers such as Mercedes-Benz.

According to eMarketer figures revealed to Campaign, Amazon will make $1.2bn in ad revenue this year, up 29% from an estimated $940m in 2015. 

That compares with a projected $2.6bn in ad revenue for Twitter and $22.4bn for Facebook.

Amazon does not break out advertising revenue in its financial statements, reporting "non-retail revenue" as "other". That includes some ad services and co-branded credit-card agreements, according to Amazon filings. Its last full-year report shows the "other" category brought in revenues of $1bn in 2015, which is compatible with eMarketer’s estimates. 

Seth Dallaire, vice-president of global advertising sales at Amazon Media Group, would not confirm the figure, saying that the company "doesn’t disclose any numbers about the business".

The majority of Amazon’s advertisers comprise brands that sell products on its site, with FMCG companies in particular taking an interest in the retailer’s data-driven proposition. 

Amazon is increasingly chasing growth by doing creative work for larger brands that do not sell through its platform, such as Mercedes-Benz.

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