While everybody is focused on Amazon’s retail business, one of its most
exciting and perhaps profitable revenue sources is advertising. In this
video interview, L2 Founder Scott Galloway speaks about how Amazon is on
its way to becoming the world’s largest media company. Amazon is the
sixth most trafficked site in the world, and it is closer than any media
company to the final step of consumers’ path to purchase. Forrester
research shows that 30% of people start their search for a product on
Amazon versus 13% on Google. Galloway says Amazon ads are incredibly
powerful because Amazon has more user data than any other media company
in the world. Amazon might know that a certain customer buys blush only
when it is on sale, but needs only a 10% discount to purchase.
Furthermore, clicking on an Amazon ad will take the consumer to the
product page where items can be on their way with a click. Galloway says
no other company has vertically integrated from media to sales like
Amazon has, which makes a strong pitch for selling ads.While everybody is focused on Amazon’s retail business, one of its most
exciting and perhaps profitable revenue sources is advertising. In this
video interview, L2 Founder Scott Galloway speaks about how Amazon is on
its way to becoming the world’s largest media company. Amazon is the
sixth most trafficked site in the world, and it is closer than any media
company to the final step of consumers’ path to purchase. Forrester
research shows that 30% of people start their search for a product on
Amazon versus 13% on Google. Galloway says Amazon ads are incredibly
powerful because Amazon has more user data than any other media company
in the world. Amazon might know that a certain customer buys blush only
when it is on sale, but needs only a 10% discount to purchase.
Furthermore, clicking on an Amazon ad will take the consumer to the
product page where items can be on their way with a click. Galloway says
no other company has vertically integrated from media to sales like
Amazon has, which makes a strong pitch for selling ads.