Amazon: Taking Market Share In Digital Advertising

This article takes an investor's point-of-view on Amazon (specifically Amazon's digital advertising business). The investor projects that Amazon's market share for digital advertising will continue to grow from around 9% to 12% in the next few years. Just as Google and Facebook are successful players in the market because they have access to lots of data, Amazon is a digital advertising force because it has access to consumer purchase data.

What the author does not detail, though, is that all data is not created equal. Amazon has purchasing intent data. When a user searches for "basketball" on Amazon, they are looking to buy a basketball from Amazon. Advertisers would pay a lot to position their product at the top of the user's webpage. And they do. Therefore, I think the author is conservative. My take is that Amazon's market share of digital advertising will continue to grow since they are at the very bottom of the consumer funnel.

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