Business article summary

Amazon

Amazon is an American cloud computing and electronic company based in Washington and founded in 1994. The company’s online advertising business competes with established Facebook and Google business. Though the company’s revenue is smaller than Google’s for ad revenue, the $1.3 billion indicates that Amazon has intensified its offerings of online advertising such that it could become threat in future. 

The online advertising strategy is good since it assist the customers in enhancing viewing and shopping experiences after recommendations. This aligns with the company’s preference to balance advertising with customer experience. The advertising business has been overlooked but it has been speculated that it could form a major part of the firm’s overall business. Amazon has been expanding its marketing strategy by providing targeted and sophisticated advertising services even though its revenue has remained small. Despite the improved revenues, management warned against reading a lot into in additional revenue noting that it comprised of other company’s arrangements or advertising deals.

In relation to business aspects, this articles shows that concerted marketing efforts through online platform can lead to increased revenues if the organizations maintains consistency. Though such efforts may not give back immediate returns to the business but it can eventually become a major source of revenue. Choosing the right marketing strategy targeting customers in online platform can lead to big opportunity for businesses.

From this article, I think that Amazon’s trend in online advertizing will be a major competitor to the established online giants such as Facebook and Google. The online advertising platform presents huge opportunities for firms to increase their revenues and improve their competitive edge in a market where consumers are increasing become present.