Amazon.com, Inc (NASDAQ:AMZN) Becomes A Threat To Alphabet Inc (NASDAQ:GOOGL) Search Advertising

Amazon.com, Inc (NASDAQ:AMZN) has lately been performing quite well in terms of the search ad revenue it has been generating. Analysts have been checking out its performance for quite some time. They think the company could be the one to beat the duopoly of Facebook Inc (NASDAQ:FB) and Alphabet Inc (NASDAQ:GOOGL).

Research findings

The latest research indicates that soon, the U.S. search ad market will witness immense growth. This study projects that it might expand by 18% to hit the $55.17 billion mark. Currently, Google has a share of 73.1%, and this percentage translates to $40.3 billion.

The same study has also focused on Amazon’s growth and projects that it will grow by about 30% over the coming year. This will translate to $7.09 billion, implying that it is set to fetch about 12.9% of the market share.

If matters keep unfolding the way they are doing at the moment, this company may grow to 15.9% by the time 2021 arrives.

The turn of events

Amazon’s growth journey has been a persistent one, beating one business giant to the next. In the previous year, it beat Microsoft (NASDAQ:MSFT) which stood on the second spot in terms of performance.

Amazon has been working smart, and this is according to a company executive that did not want his name disclosed. He revealed that the business had been offering the best condition for sellers on its platform. For instance, sellers were allowed to bid on some particular special terms that would work for their good. This was about making such users rank higher on the users’ search results. This made it easy for the seller to convert their ads into significant sales. This may be one of the reasons the company is performing in such an outstanding way.

Recently, Amazon also took another significant move where it purchased a dynamic creative optimization unit and a server. It made this purchase from a business known as Sizmek. With the new advanced tool, Amazon will simplify matters a huge deal for businesses. The company says that advertisers will be able to place ads and at the same time, measure the effectiveness of those particular ads. It also says that the tool will use data in the personalization of ads.

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