Amazon advertising to benefit from CPG sales growth, Jefferies says - Business Insider

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These charts show how Amazon's ad business could surge even higher thanks to its pandemic-fueled rise in grocery and household sales

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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