Sina Science and Technology News on the morning of May 26, Beijing time, it is reported that according to a recent study by Loop Capital, an American investment bank,AmazonThe online advertising business is growing rapidly, and advertising revenue has beenSnap、Twitter, Roku andPinterestThe combined advertising revenue of Internet companies is 2.4 times, and the growth rate is 1.4 times that of these companies.
Research shows that in the past 12 months, AmazonA total of $22.4 billion in online advertising revenue, a year-on-year growth rate of 65%. While several other medium-sized Internet platforms Snap(chat service SnapchatOwner), Twitter, Roku (video hardware manufacturer) and PinterestAmazon's total advertising revenue is $9.3 billion, which is 2.4 times that of these platforms combined. In addition, the advertising revenue of these companies increased by 38% over the same period of time.
In recent years, online advertising has become another breakthrough business for e-commerce giant Amazon. Last month, Amazon announced its latest quarterly results. The company's "other businesses" section mainly includes online advertising, as well as revenue from other services. Total revenue in this sector rose 77 per cent in the first quarter from a year earlier (an astonishing growth rate) to $6.9 billion.
In addition, there have been some variables in the online advertising industry recently, such asAppleChanges to the iOS operating system to make it easier for consumers to block customized ads will give Amazon's advertising business new growth momentum.
In a research report released on Monday, analysts at Loop Capital said that due to the high number of visits to Amazon's e-commerce site and an in-depth understanding of users' consumer preferences, online advertising on Amazon's platform that pays for per-click provides great value to dealers and brands.
Loop Capital also mentioned Amazon's recent appearance at the advertising industry conference "IAB NewFroants" about its development plans in the field of online video advertising. Earlier this month, Amazon announced that its advertising-plugged online video service had 120 million monthly active users, with Amazon's game video streaming site Twitch becoming one of the engines.
Analysts at Loop Capital pointed out that Amazon's new initiative in video advertising will develop into a very important revenue contribution sector in a relatively short period of time, given Amazon's technology, scale, hardware penetration and close ties with consumers. Analysts also said that the Internet advertising business has a high gross margin, but they believe that this positive factor is not fully reflected in Amazon's current stock price.
Separately, US media reported on Monday that Amazon plans to buy established Hollywood studio MGM for $8.5 billion to $9 billion. MGM owns the James Bond films and other high-quality film and television assets. The acquisition is expected to be announced within this week.