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Amazon.com’s Ad Prices Could Soar Next Year | The Motley Fool

Amazon.com’s (NASDAQ:AMZN) ad business has grown extremely quickly over the past few years. While the retailer’s ad products have been around in one form or another since 2012, it’s only recently started investing more resources in the business. Amazon is now the third largest digital advertising company in the United States.

A lot of Amazon’s ad revenue growth has come as a result of opening new ad inventory to capitalize on the huge amounts of traffic on its online marketplace. But as demand has caught up with supply, Amazon’s next best path to revenue growth is increased prices. Facebook, notably, saw significant increases in average ad prices when its ad inventory became more restricted a couple years ago. Amazon may be about to experience a similar result as more advertisers move to optimize their spending on the website.

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Amazon.com’s Ad Prices Could Soar Next Year.

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