BMO Financial Group

Can Amazon Be King? How The Ecommerce Leader Could Surpass The Duopoly

A discussion on whether Amazon could overtake Google and Facebook as a digital advertising platform, noting that Google remains far ahead in 2018 while Amazon has grown from $4.6B to $10.1B in ad revenue and faces challenges from ad tech maturity and Prime Video's ad-free model. The piece cites 2018 ad revenues: Google $116.3B (up $21B YoY) and Facebook $55B, compares Amazon's growth trajectory, and discusses potential accelerants such as opening up ecommerce data, expanding ad inventory, and the May acquisition of the Sizmek ad server. It also notes that Amazon's Prime Video is ad-free, that Amazon launched a self-serve ad platform, and that Amazon's data (POS and intent) could differentiate it if integrated with advertising. Industry perspectives from Zenith, BMO, Forrester, Mediaocean, and GroupM are cited, while AWS and Prime Video constraints temper the optimistic outlook.

Acxiom Working Out How To Maximize Value From A LiveRamp Sale

Acxiom is pursuing a two-stage plan to maximize shareholder value by selling its Marketing Solutions division (AMS) first, then potentially divesting LiveRamp, its connectivity business. The company has launched two separate strategic reviews—one for AMS (announced in February) and another for LiveRamp—while publicly stating it will not entertain bids for the entire company. The approach follows heightened interest in Acxiom and LiveRamp sparked by Salesforce’s $6.5 billion acquisition of MuleSoft. Private equity buyers have reportedly been exploring a purchase of AMS with the aim of taking LiveRamp to a higher-value exit. Among potential buyers for LiveRamp as a standalone asset are Oracle, Adobe, Salesforce, and Nielsen. With a market capitalization around $2.2 billion, executives believe splitting the business could unlock substantial value, though privacy concerns, including GDPR implications and European Commission scrutiny of identity matching, loom as potential headwinds. The divestitures are expected to extend into late 2019 or 2020.

The Complete Guide To Amazon’s Ad Business

Amazon’s advertising business is expanding across its ecosystem, yet remains opaque to many partners. Industry projections place its direct-response ad spend at about $18 billion (BMO Capital Markets), while Citi Research sees total Amazon ad revenue growing to $50.6 billion by 2028 (from $10.2 billion this year) and JPMorgan puts this year’s figure at about $4.5 billion. Earlier forecasts had estimated $1–$2 billion last year. The Amazon ad stack spans Amazon Marketing Services (self-serve) and Amazon Media Group (AMG) for larger brands such as Procter & Gamble and Unilever, with opportunities in headline search, sponsored products, display, and video. Amazon’s DSP, AAP, is described as a leader by Advertiser Perceptions, surpassing Google’s DoubleClick Bid Manager among buy-side marketers. New features include Amazon Advertiser Audiences CRM matching, the Transparent Ad Marketplace, and a server-side header bidding wrapper, plus AWS Elemental Media Services for video monetization. Alexa ads remain unadopted for now.