When Jeff Bezos attended this year's Sun Valley Summit this morning, he knew far more about the media moguls than they did about them. That worries the other side, especially at a time when Amazon's advertising business is growing.

Amazon's growing advertising business is expected to challenge Google and Facebook's leadership, thanks to the dominance of the e-commerce market and its growing reach in the media world.

Google knows what consumers are interested in, and Facebook knows who you are. But Amazon has the message that many in the advertising industry value most: what exactly people buy. Now, the home appliance giant is tapping into the potential of the data.

"It's really growing into a media company, but its advertising revenue is soaring." "The concern for marketers is that the data won't be open to the public, " says Brian Braiker, editor of The Age of Advertising. If you want to get this kind of information, you have to follow Amazon's rules. "

Most of Amazon's revenue still comes from e-commerce and AWS cloud computing, but the company's advertising business is also growing. In the first three months of 2018, the company's "other revenue", which consists mainly of advertising revenue, rose 139 per cent to $2bn.

"Interestingly, advertising is not their dominant business." "It's only a small part of their revenue, but it's growing very fast, " says Michael Kassan, founder of MediaLink, an advertising and media consultancy. "

Amazon has become a disruptive company, and every time it enters an industry, its market share drops dramatically. The company has built a variety of businesses at a loss over the past few years, which has put pressure on competitors in the process.

Colin Colburn, an analyst at Forrester, a market research firm, warned that Amazon could do the same in the advertising industry. "Amazon is not a middleman, " he says. " "

Facebook and Google remain the two biggest groups in the online advertising market, with digital advertising spending expected to account for more than half of the market in 2018. Microsoft, Twitter, Snapchat and Verizon are all vying for the top three in the global digital advertising market. The market is expected to grow 61 per cent next year to a total of $316bn, according to eMarketer, a market research firm.

But eMarketer expects Amazon to outshoot Bezos with its tried-and-tested strategy, which typically patiently in the short term in exchange for long-term dominance.

"Amazon is fifth in the U.S. digital advertising market and is expected to be third in 2020." "The question now is when the company will take advantage of its vast reach and rich data to increase advertising in other areas," said Monica Peart, eMarketer's senior forecasting director. "

One of Amazon's big strengths is its search engine: a consumer survey found that about half of all product searches were done through Amazon, dwarfing Google's performance.

The company can run search ads next to search results to show consumers sponsored content for any product. "I think Amazon is going to do retail search and challenge Google," Alex DeGroote, an analyst at Genkos Securities, a financial firm, told CNBC in April. Over time, you'll see Amazon as your ownRetail.Search engines, Google will lose that status. "

In addition to search ads, Amazon has more ads to sell.

Amazon's media business is expanding and now includes content such as movies, television and live games. The company sold $2.8 million worth of video packages for Thursday night's NFL game last year. Amazon's sales team also sells ads on the home pages of Fire tablets, Kindle e-readers and IMDB.com movie data sites.

They also have Twitch, a social gaming platform that helps it sell ads to hard-to-reach young people. Amazon is also stepping into Google's territory to display ads across the Internet through so-called programd ad buying technology. Amazon also has a direct relationship with content publishers to run ads directly on its website.

Then there's Alexa. Although the company hasn't yet sold ads in the voice assistant, it's possible to launch the service once they figure out how to deliver it. Earlier, it was reported that Amazon had invited advertising executives to help it plan the project.

Because Amazon can cover a wide range of media and reach out to different types of advertisers, it can get involved in a variety of industries. It also allows the company to optimize its advertising services and make its advertising system more attractive to consumers, said Seth Dallaire, vice president of global advertising sales and marketing at Amazon Media Group.

When Verizon bought Yahoo to create Ohth, few expected ambitious advertising noers Google and Facebook to overtake the online advertising giants of the day. According to eMarketer, Amazon had planned to beat Oath in 2020, but Bezos may look further adrenast.

With another rising star, how long can Google and Facebook stay in the lead?

Source: Sina Technology