Amazon's Revenue To Double By 2023 Driven By AWS, Ads, And Prime.

NIKOLAOS SISMANIS | December 15, 2019

article image
Free one-day shipping for Prime members should steady Amazon.com's revenue growth, with market-share gains and higher profit likely on third-party-seller growth and expanded advertising inventory. The move incurs near-term costs, yet continued gains in ad, cloud, and international margins may help offset the drag. AWS is snowballing, and long term trends of cloud consumption should propel its revenue even higher. I expect Amazon's revenue to double by 2023. One-day shipping will continue to spur revenue growth for Amazon.com next year as margins contract on rising costs. Costs associated with logistics can induce variability in Amazon's earnings until it laps the transition by year-end. As cloud focus shifts to chasing business sales next year, it may come at a higher cost of headcount amid increasing competition from Google(GOOGL)(GOOG) and Microsoft(MSFT).

Spotlight

MAA Communications.Ltd

How do you define an agency that is constantly redefining itself? We started out as Marketing and Advertising Associates, as far as 1959. One of the first wholly Indian Agency driven by the passion of a visionary, Ayaz S Peerbhoy, to evolve an Indian communications agency to reach out to the Indian consumer. Since then it has been a long journey of evolving & re -aligning ourselves to the changing mediascapes, always one step ahead. This is perhaps why we are known as the innovators of the industry. From being TQM complaint to pioneering the concept of Integrated Communications, with Vertical Specializations that works together to give a brand a planned synchronized voice across all media, to today being among the last Indian privately held Advertising agency.

OTHER ARTICLES

Why Netflix Needs To Brand Its Netflix Originals Differently

Article | March 8, 2020

As the Netflix Original library becomes an increasingly big part of the Netflix overall lineup, we believe that it’s time Netflix started branding its Netflix Originals. Below, we’ll hopefully make the case as to why it should happen and possibly how to do it. We’re writing this in the wake of a huge influx of new streaming services that are operated by big corporations that have multiple labels. We’re also doing it a week after FX on Hulu launches. The issue with this is probably an issue you’ve seen online. “All Netflix Originals are crap” or “all Netflix originals are foreign”. When you think of HBO (one of Warner Medias brands) you know roughly what you’re in for. Top budget series with quality. If you think of Cartoon Network, you know what you’re in for. Likewise, if you mention The CW, you know it’s going to be a lower budget than Warner’s HBO output.

Read More

Most Advertisers Shifting, Not Canceling, Media Campaigns Amid Pandemic, Advertiser Perceptions Report Finds

Article | March 31, 2020

While 89 percent of advertisers have been disrupted by COVID-19, only a third have canceled a campaign outright. The rest are changing their media mix and/or looking to shift their spending into the second half of the year. Despite the shifting of current media dollars, fully 81 percent of advertisers expect to cut ad budgets significantly this year, and 68 percent expect to spend less next year because of the pandemic.

Read More

Is customer experience enhanced by branding e-commerce shipping boxes?

Article | February 21, 2020

While an entire marketing industry exists around the concept of experiential packaging and its impact on the customer experience, the focus has been mostly on inner boxes. The Wall Street Journal reports retailers are attempting to offset shipping costs by selling ad space via package inserts that are placed on the inside of boxes, but printing on the outside of shipping boxes still remains a largely untapped market. While the outside of corrugated shipper boxes has been largely ignored, that seems to be changing. Some retail giants, such as Amazon, are driving the trend of branding shipping boxes. It has been more than four years now since Amazon made headlines by plastering its shipping boxes with advertisements for the movie Minions. Amazon has continued to use its shipping boxes to promote its own products.

Read More

YouTube, auditor spar over transparency of ads

Article | April 19, 2020

Google wants to substantially limit the information a key auditor of YouTube can share about the risks of advertising on the video service, according to people familiar with the situation, highlighting tensions between the tech giant and Madison Avenue. The auditor, New York-based OpenSlate, is refusing to sign a contract that would prevent it from reporting to clients when ads have run in videos with sensitive subject matter, including hate speech, adult content, children's content, profanity, violence and illegal substances, according to an email the firm sent this weekend to ad agencies.

Read More

Spotlight

MAA Communications.Ltd

How do you define an agency that is constantly redefining itself? We started out as Marketing and Advertising Associates, as far as 1959. One of the first wholly Indian Agency driven by the passion of a visionary, Ayaz S Peerbhoy, to evolve an Indian communications agency to reach out to the Indian consumer. Since then it has been a long journey of evolving & re -aligning ourselves to the changing mediascapes, always one step ahead. This is perhaps why we are known as the innovators of the industry. From being TQM complaint to pioneering the concept of Integrated Communications, with Vertical Specializations that works together to give a brand a planned synchronized voice across all media, to today being among the last Indian privately held Advertising agency.

Events