Amazon Building Big Ad Business From What You Buy

Online-retailing titan Amazon.com Inc. reportedly is building a profitable advertising business essentially by cashing in on consumers’ online buying habits. Ads sold by Amazon (AMZN), once a limited offering at the company, can now be considered a third major pillar of its business, along with e-commerce and cloud computing, the New York Times explained. “Amazon’s advertising business is worth about $125 billion, more than Nike or IBM, Morgan Stanley estimates. At its core are ads placed on Amazon.com by makers of toilet paper or soap that want to appear near product search results on the site,” the Times explained. “But many ad agencies are particularly excited by another area of advertising that is less obvious to many consumers. The company has been steadily expanding its business of selling video or display ads the square and rectangular ads on sites across the web and gaining ground on the industry leaders, Google and Facebook,” the Times said.

Spotlight

Spotlight

Related News