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| Amazon's advertising revenue is twice that of Snap and Twitter combined |
According to Loop Capital, the significant growth in Amazon's advertising division shows that its contribution to sales is now twice that of Snap, Twitter, Roku, and Pinterest, and is growing rapidly at a rate of 1.7.
The company reported last month that first-quarter revenue from its so-called "other" segment of Amazon increased by 77% year-on-year to more than $ 6.9 billion. This revenue mainly includes ads, but also sales related to service products.
Apple recently made changes to its program to make it easier for users to prevent advertisers from following it. These industry trends should provide further impetus to Amazon's growth.
The company said earlier this year that Amazon has a lot of detailed consumer data: Global Prime members have over 200 million global memberships.
As changes to transparency in Apple app tracking come into effect, Amazon data could become a scarce and valuable commodity for marketers.
Loop Capital analysts wrote in a note: The unprecedented ads and user stats led by e-commerce sites across Amazon's traffic offer sellers and brands significant added value.
They also cited the company's speech at the recent IAB NewFronts conference, which discussed the company's efforts on air.
Amazon, powered by platforms like Twitch, said earlier this month that ad-supported video streaming content now reaches more than 120 million viewers per month.
The analyst wrote: With the help of Amazon technology, scalability, hardware access, and mainstream connectivity, we believe these latest efforts can become a very important contribution in a relatively short period of time.
Amazon advertising revenue was $ 22.4 billion for the past 12 months, up 65% year-on-year.
That number is 2.4 times the total revenue of the mid-sized ad platforms Snap, Twitter, Roku and Pinterest of $ 9.3 billion, an increase of 38% over the same period.
Amazon is close to ending its $ 8.5 billion to $ 9 billion acquisition of MGM Studios. MGM Studios is a co-owner of the James Bond series and other films and television series.