The digital advertising industry is being turned upside down and small players are being squeezed out, thus, representing the vast majority of revenue taken in by tech giants, Google and Facebook.
Amazon doesn’t plan to sit idly by while its competitors make all the money, and has opened a new office in New York City dedicated to selling digital ads.
Several media agencies have already said they’ve been contacted by Amazon representatives about buying ad space, according to Digiday.
The company has begun to beef up its advertisements sales team, and with the opening of the NYC office, it says it will add 2,000 jobs.
Amazon wants to branch out and start offering to advertise companies it usually doesn’t work with, ones that don’t sell products on its website, such as restaurants, airlines, and luxury brands. If successful, the commerce giant would break into the market dominated by Facebook and Google.
By itself, Google is projected to account for 40 percent of all digital ad revenue in 2017.
Of course, if any company has proven it can branch out, its Amazon, and it already has a significant hand in the industry. Furthermore, the digital advertising industry is growing like a weed, with revenues increasing by 20 percent industrywide last year.
Nonetheless, the company will want to make sure they know exactly who they’re selling ad space to, a fact that is now all too clear to Facebook.
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