Amazon after dominating the online retail market is now emerging as a competitor in the highly income generating area of online advertising. Amazon’s emergence can create severe competition to Google and Facebook.

Even Prime customers of Amazon , who pay $119 a year for access to free shipping as well as streaming music, video and discounts  are likely to be confronted by ads which was not there earlier. In late August, some gamers were angered when Twitch, a video game streaming service acquired by Amazon in 2014, said it would soon no longer be ad-free for Prime members unless consumers paid an additional $8.99 a month for a premium service called Twitch Turbo.

Amazon derives the bulk of its annual revenue, forecast to be $235 billion this year, from its e-commerce business, selling everything from books to lawn furniture. Amazon is also a leader in the cloud computing business, with Amazon Web Services, which accounts for around 11 percent of its revenue but more than half of its operating income. It mostly consists of revenue from selling banner, display and keyword search-driven ads known as “sponsored products.” That category surged by about 130 percent to $2.2 billion in the first quarter, compared with the same period in 2017.

Those numbers are a pittance for Google and Facebook, which make up more than half of the $88 billion digital ad market. But it of course creates a threat to them. Here, Amazon has a big advantage over its competitors  due to its huge  data and analytics on consumer shopping habits.

Amazon is gaining in advertising when the public perception of Google and Facebook has soured. In addition, some advertisers have yet to return to YouTube, a growing ad channel for Google, after brands like AT&T were found appearing adjacent to videos that promoted racism or terrorism.

Experts believe that the online retailer giant Amazon has an edge over Google and Facebook as Amazon has a much more controlled environment on its ads. They also emphasize that Amazon is giving more concentration on advertising which will cause a tough competition for other online advertisers. Many big brands that sell products on Amazon have increased their advertising on the site this year. Brands feel that they prefer advertising in Amazon as they find more shoppers there.

As Amazon has a huge consumer data bank they will be in a position to focus on targeted  consumers for a particular product.Amazon is not just selling ads online. The opportunities to advertise over Amazon may increase as the e-commerce giant continues to build its internal media group and opens new advertising spots on various platforms or devices.

But Some  brands, who  face competition from Amazon private-label goods, remain unwilling  to