What has happened?
Early June saw Amazon confirm the acquisition of ad serving platform Sizmek offering a significant insight into the future direction of the much talked about “Amazon Advertising” arm of the business.
Whilst Amazon’s ad revenue is relatively small in comparison to its e-commerce business, it is expanding rapidly into the company’s “other” revenue streams. In the opening quarter of the year Amazon Advertising grew 34% generating $2.7 billion in revenue. The company is increasingly seen as the most likely to challenge Google & Facebook in the future.
The Media Store Take
Amazon has yet to discuss any form of integration strategy, however this recent acquisition is a clear indication of the direction it wishes to take. The deal highlights Amazon as the most likely to disrupt the market and a genuine contender to take on the current duopoly of Google and Facebook.
This move is considered significant for Amazon as it continues to build a fully integrated advertising stack, meaning consumers would never need to leave the platform. Sound familiar? Whilst there is a way to go, this recent news sets the scene for a seemingly inevitable collision course with the two biggest players in online advertising.