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 Inc、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 platformsSnap Inc(chat serviceSnapchatOwner),Twitter, Roku (video hardware manufacturer), andPinterestAmazon.Com Inc'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.Com Inc. Last month, Amazon.Com Inc released its latest quarterly results. The company's "other business" 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 asAppleAdjustments to the iOS operating system to make it easier for consumers to block personalized ads will bring new growth momentum to Amazon.Com Inc's advertising business.
In a research report released on Monday, analysts at Loop Capital said that due to the high number of visits to Amazon.Com Inc's e-commerce website and an in-depth understanding of users' consumer preferences, online ads paid for per click on Amazon.Com Inc's platform provide great value to dealers and brands.
Loop Capital also mentioned Amazon.Com Inc's recent appearance at the advertising industry conference "IAB NewFroants" about development plans in the field of online video advertising. Earlier this month, Amazon.Com Inc announced that the monthly active users of his online video service with advertisements had reached 120 million, with Amazon.Com Inc's game video live streaming site Twitch becoming one of the "engines".
Analysts at Loop Capital pointed out that given Amazon.Com Inc's technology, scale, hardware penetration and close ties with consumers, Amazon.Com Inc's new initiative in the field of video advertising will develop into a very important revenue contribution sector in a relatively short period of time. Analysts also said that the Internet advertising business has a high gross profit margin, but they believe that this positive factor has not been fully reflected in Amazon.Com Inc's current stock price.
Separately, US media reported on Monday that Amazon.Com Inc 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.