New research published by eMarketer this week reveals that Amazon’s advertising business is bigger than Twitter’s.
Amazon has ramped up its advertising strategy in recent years, and now its seeing the benefits – and possibly leaving another ad newcomer, Twitter, in its dust.
According to eMarketer, Amazon brought in $450 million in advertising in revenue last year, an increase of two-thirds between 2011 and 2012, and is expected to grow it by another half this year to $660 million.
That’s in comparison to Twitter’s estimated ad business of $580 million this year, pegged by eMarketer at the end of March.
A few reasons Amazon has it a little easier in the ad game than Twitter when it comes to generating revenue: Amazon has an incredible amount of inventory with ads on each page; it has the ability to run ads on Amazon-owned sites like Zappos and Shopbop, Kindle devices and websites of its ad network partners; and it has at its disposal a vast quantity of customer purchasing data collected through its retail sites.
eMarketer’s March report on Twitter ad revenue averred that 53% of Twitter’s ad revenue will come from mobile advertising this year, up from virtually no ad revenue from mobile in 2011. If that sector continues to grow nicely, Twitter should be able to hold its own – especially thanks to new ad products rolling out, and more on the horizon.