Analysis: Should retailers follow Amazon and sell ads on their websites?


Amazon has amassed a £10bn-a-year business from letting brands advertise on its website. Should other retailers follow suit?

Where shoppers start their shopping journey is changing. Amazon, not Google, is where most product searches take place – between 2015 to 2018, 54% of product searches took place on the retailer’s website, according to analytics firm Jumpshot.

Amazon has pounced on the opportunity this brings and has developed its own in-house advertising division. Today, the online retailer is the third-largest advertising platform in the US, behind Google and Facebook. Last year, it posted $10.1bn in revenue in its ‘other’ category, which primarily relates to sales of advertising services.

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