ereaders may be under-appreciated source of ad revenues

Amazon quietly generating $800 million revenues from Kindle

amazon gets ad revenues from Kindle

It seems the digital advertising market may have been missing a trick as it appears that Amazon is quietly set to accumulate over $800m of revenue in 2013, according to digital research group, eMarketer. This revenue comes from ad slots on Kindle devices as well as a network of web sites. Amazon is benefitting from the convergence of increasing online shopping with targetted advertising. It’s particularly pertinent to the mobile sector where online purchasing is rapidly becoming easier.

Although devices like the Kindle Fire are often seen as dedicated ebook readers, in reality they are full tablets and industry figures show that tablet users purchase more and click on ads more than smartphone users.

Although Amazon’s increasing success is unlikely to phase Google, it could prove a threat to the likes of AOL, Microsoft and Yahoo!

eMarketer estimated that Amazon earnt around $610 million in 2012 which is peanuts compared to Google whose advertising revenue was $33 billion.

The Financial Times here quoted media expert, Chris Vollmer from Booz & Co, as saying that Amazon offered a “unique proposition” to advertisers selling goods by combining its data on shopping habits with its ability to complete e-commerce sales.

He continued, “They [Amazon] can close the loop on the purchase right there.”

“That’s a big advantage for marketers. They don’t lose the consumer between the point where the impression is created and where the sale happens.”

GoMo News believes that the ability to read ebooks as well as shop online is a key ability which BlackBerry is failing to highlight in its PlayBook.

The PlayBook is the ideal size for women, for example, to carry around in their handbags [pocketbooks] to use to surf price comparison sites. This presents an ideal opportunity for advertisers and marketers.

About Tony Dennis

Tony is currently Editor of GoMobile News. He's a veteran telecoms journalist who has previously worked for major printed and online titles. Follow him on Twitter @GoMoTweet.
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