Amazon could see more consumer packaged goods companies buy ads on its site as sales of food, beverages, and everyday consumables continue to grow during COVID-19.
As a result, Jefferies is raising its estimates for Amazon's advertising revenue by 2% to $23.5 billion in 2021 and $49 billion in 2025.Amazon's advertising business stands to gain potentially tens of billions of dollars in additional revenue because of its booming grocery and household sales amid COVID-19.
As more brands that sell food, drinks, and daily consumables see Amazon as a viable sales channel, in part because of the lockdown-driven demand increase, they'll start buying more ads on the online retailer, boosting the company's overall advertising revenue.
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