Amazon Ad Clicks Are Surging
Amazon.com's (NASDAQ: AMZN) ad business has quickly become a huge source of revenue for the online retail giant. The $11 billion business grew about 37% year over year last quarter. That's right in line with the growth in product page views coming from ad clicks, according to data from Jumpshot that was recently reported by Recode.
In July, 11% of product page views on Amazon came from ad clicks, up from just 8.8% a year prior and 6.9% in April 2018. It's unclear whether that growth stems from improved ad effectiveness, increased ad inventory, or a combination of both.
Amazon's search results have notably become more crowded with sponsored listings, pushing advertisers to spend more for top rankings and make their ads more effective. So investors need to consider how much more Amazon can grow product page views from sponsored listings and how it can keep increasing ad sales.
Source Fool.com
