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Amazon Ads’ Rapid Growth
Amazon (NASDAQ: AMZN) has significantly expanded its digital advertising business, generating over $50 billion in revenue in 2024, making it one of the company’s fastest-growing segments. Recently, Amazon formed a partnership with Netflix to sell its advertising inventory through Amazon’s demand-side platform (DSP), reinforcing Amazon’s position as a critical platform in digital marketing.
Impact on Competitors
The rise of Amazon Ads poses challenges for independent demand-side platforms such as The Trade Desk, which may face increasing competitive pressure as advertisers shift budgets to Amazon’s offerings. This trend also affects traditional digital ad powerhouses like Alphabet and Meta, with Amazon increasingly dominating in retail media and streaming video, threatening their market share.
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