Next Big Futures, a non-profit focused on improving the future of journalism, has published an extensive report on the Amazon marketing efforts and the impact that they are having on journalists and the news industry.
The report outlines the impact of Amazon’s “AMAZON PROMOTION” strategy, which the organization describes as a “major effort to increase the reach and reach of Amazon content and media products” through “shopping, promotion, marketing, and other promotional efforts to news and local media”.
The report goes on to describe how these efforts have “generated over $4.5 billion in sales and $1.6 billion in advertising revenue in 2015”, as well as generating $2.1 billion in revenue in the last fiscal year alone.
Amazon has been active in promoting local news outlets in the US, Australia, New Zealand, and the UK, and is the largest online retailer in the world.
AMAZONS PROMETITION: Amazon’s Amazon Marketing Efforts article It is also worth noting that Amazon’s advertising revenue generated from the “amazon.com/sales” category alone in the UK has already surpassed $1 billion, according to the Office for National Statistics.
However, the majority of the money earned from Amazon’s sales efforts comes from Amazon Prime, a subscription-based service that gives users free, ad-free access to Amazon products.
In 2016, Amazon Prime subscriptions were valued at over $30 billion, with the UK alone generating more than $1 trillion of revenue from the service.
It is not clear what Amazon’s strategy is for future efforts to promote local news in the country.
However it is clear that the company is determined to expand its reach and marketability in the region, with recent investments such as the launch of a new media centre and expansion of the Echo line of devices.
“The aim is to get local content into the hands of as many people as possible and to reach as many local audiences as possible,” Amazon spokesperson, Sarah Hall, told Next Big Trends.
The company has previously stated that it wants to reach “over 10 million UK residents by 2020” and that the Prime program is “aimed at reaching more than 10 million people in each of the UK’s 50 local media markets, where Amazon currently operates, over the next five years”.