Saturday, April 9, 2011

Is Amazon Entering the Display Ad Business?

In principle, there are few reasons Amazon might not want to become something more like an ad network than a shopping site. It has an enormous information technology infrastructure, including all of its cloud computing assets, and has not been shy in the past about developing retail businesses originally created to support its own internal operations.

Ben Schachter of Macquerie Research notes that Amazon is making investments to compete in the $30 billion online display advertising market, well beyond the existing business it runs by offering ads on its own site.

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