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Amazon's Strong Twitch Goals Threaten FB-GOOGL Ad Dominance
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Amazon (AMZN - Free Report) is keeping no stone unturned to bolster its presence in the digital advertisement world. The company is taking every possible effort to leverage the popularity of its streaming service Twitch to fast penetrate this space, which is currently dominated by Alphabet (GOOGL - Free Report) and Facebook .
Amazon’s focus on providing advanced level of live streaming through Twitch based on the deals it has with the media companies, presents significant threat to Google’s YouTube and Facebook’s Watch.
Recently, the CEO of Twitch, Emmett Shear revealed that the company is gearing up to reach a record high of $1 billion in ad sales.
Amazon’s Aggressive Stance With Twitch
In fact, Twitch has become Amazon’s primary weapon against YouTube in the field of video streaming as well as advertisement.
Although, YouTube’s viewer base is much higher than that of Twitch Amazon’s focus toward expansion of its content portfolio is likely to bring in more viewers to its platform. Currently, YouTube has 1.9 billion viewers on a monthly basis whereas Twitch has 15 million viewers on a daily basis.
Twitch’s live streaming of TV shows and in-real life (IRL) videos segment remains its key growth driver. Twitch Creative allows the users to post non-gaming videos. It welcomes artists like chefs, singers, actors to stream live.
Consequently, Amazon is aggressively pushing for deals with popular artists, actors, pop stars and others who enjoy a certain degree of relevance to general audiences.
The company has inked a deal with a Kansas prankster namely Tanner Braungardt whose subscriber base totals 4 million on YouTube. Further, the company has also convinced National Basketball Association to join Twitch and stream minor league games.
Moreover, Amazon was successful in gaining attention of Rafi Fine who owns some of the biggest channels on YouTube. Additionally, the company has had already approached Gigi Gorgeous, Will Smith and many other popular figures to join Twitch.
Further, Amazon has approached popular YouTuber, Nichole Boyd, to stream live on Twitch. Notably, Boyd has 500K subscribers on YouTube and is interested in the offer.
All the above mentioned factors were related to Amazon’s strong push toward non-gaming streaming. Moreover, the company continues to enjoy a strong momentum across the gaming audiences on the back of its huge game streaming portfolio. We believe this provides Twitch an edge over YouTube with the growing demand for video games globally.
Reportedly, streaming of Ninja, a popular internet personality, continues to aid Twitch’s popularity among audiences. Moreover, an e-sports marketing agency called Ader helped Twitch earn revenues from the marketing of recently released Black Panther DVD release on its site.
Further, Amazon has its Twitch Prime plan which is likely to boost its subscriber base for Twitch, thanks to the customer friendly services and offers provided by Prime. Consequently, this will add strength to the subscriber base of the individual artists and media companies on Twitch.
All these might hurt the dominance of YouTube which is a significant driver for Google’s ad revenues since it is the world’s biggest advertisement supported video platform which has largest subscriber base.
All the above mentioned endeavors will continue to aid growth of the company’s ad business which has started gathering steam in the recent times.
In the previous quarter, the company generated $2.19 billion revenues from its “Other” segment which is primarily comprised of advertising activities. The figure soared 132.2% from the year-ago quarter and 7.9% sequentially. This can be attributed to working with big retail brands on a large scale.
Reportedly, the company is planning to merge its ad platforms namely Amazon Media Group, Amazon Marketing Services and Amazon Advertising Platform to further expand its business.
Google-Facebook Duopoly in Danger
Considering the immense growth opportunities in the advertising world, several players are vying for a slice of the market. Apart from Alphabet and Facebook, Snap (SNAP - Free Report) is another company that is aggressively gaining market share.
However, we believe Amazon remains well-positioned to grab market share driven by its aggressive push with Twitch at the forefront, which threatens the duopoly of Google and Facebook.
According to eMarketer’s report, while Google is anticipated to reach $40 billion in its advertising business, Facebook is expected to hit $20 billion in 2018. However, according to Piper Jaffaray analyst, Amazon’s ad business is well poised to go beyond the success of Amazon Web Services (AWS) and surpass revenues by 2021.
Amazon is the fifth largest player in this space but given its strong efforts, it is expected to come in the third position by 2020. Further, it is anticipated to witness a surge of 64% in its ad revenues in 2018.
Both Alphabet and Snap carry a Zacks Rank #3 (Hold), while Facebook has a Zacks Rank #4 (Sell).
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Amazon's Strong Twitch Goals Threaten FB-GOOGL Ad Dominance
Amazon (AMZN - Free Report) is keeping no stone unturned to bolster its presence in the digital advertisement world. The company is taking every possible effort to leverage the popularity of its streaming service Twitch to fast penetrate this space, which is currently dominated by Alphabet (GOOGL - Free Report) and Facebook .
Amazon’s focus on providing advanced level of live streaming through Twitch based on the deals it has with the media companies, presents significant threat to Google’s YouTube and Facebook’s Watch.
Recently, the CEO of Twitch, Emmett Shear revealed that the company is gearing up to reach a record high of $1 billion in ad sales.
Amazon’s Aggressive Stance With Twitch
In fact, Twitch has become Amazon’s primary weapon against YouTube in the field of video streaming as well as advertisement.
Although, YouTube’s viewer base is much higher than that of Twitch Amazon’s focus toward expansion of its content portfolio is likely to bring in more viewers to its platform. Currently, YouTube has 1.9 billion viewers on a monthly basis whereas Twitch has 15 million viewers on a daily basis.
Twitch’s live streaming of TV shows and in-real life (IRL) videos segment remains its key growth driver. Twitch Creative allows the users to post non-gaming videos. It welcomes artists like chefs, singers, actors to stream live.
Consequently, Amazon is aggressively pushing for deals with popular artists, actors, pop stars and others who enjoy a certain degree of relevance to general audiences.
The company has inked a deal with a Kansas prankster namely Tanner Braungardt whose subscriber base totals 4 million on YouTube. Further, the company has also convinced National Basketball Association to join Twitch and stream minor league games.
Moreover, Amazon was successful in gaining attention of Rafi Fine who owns some of the biggest channels on YouTube. Additionally, the company has had already approached Gigi Gorgeous, Will Smith and many other popular figures to join Twitch.
Further, Amazon has approached popular YouTuber, Nichole Boyd, to stream live on Twitch. Notably, Boyd has 500K subscribers on YouTube and is interested in the offer.
All the above mentioned factors were related to Amazon’s strong push toward non-gaming streaming. Moreover, the company continues to enjoy a strong momentum across the gaming audiences on the back of its huge game streaming portfolio. We believe this provides Twitch an edge over YouTube with the growing demand for video games globally.
Reportedly, streaming of Ninja, a popular internet personality, continues to aid Twitch’s popularity among audiences. Moreover, an e-sports marketing agency called Ader helped Twitch earn revenues from the marketing of recently released Black Panther DVD release on its site.
Further, Amazon has its Twitch Prime plan which is likely to boost its subscriber base for Twitch, thanks to the customer friendly services and offers provided by Prime. Consequently, this will add strength to the subscriber base of the individual artists and media companies on Twitch.
All these might hurt the dominance of YouTube which is a significant driver for Google’s ad revenues since it is the world’s biggest advertisement supported video platform which has largest subscriber base.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. Price and Consensus | Amazon.com, Inc. Quote
Amazon’s Ad Business Booming
All the above mentioned endeavors will continue to aid growth of the company’s ad business which has started gathering steam in the recent times.
In the previous quarter, the company generated $2.19 billion revenues from its “Other” segment which is primarily comprised of advertising activities. The figure soared 132.2% from the year-ago quarter and 7.9% sequentially. This can be attributed to working with big retail brands on a large scale.
Reportedly, the company is planning to merge its ad platforms namely Amazon Media Group, Amazon Marketing Services and Amazon Advertising Platform to further expand its business.
Google-Facebook Duopoly in Danger
Considering the immense growth opportunities in the advertising world, several players are vying for a slice of the market. Apart from Alphabet and Facebook, Snap (SNAP - Free Report) is another company that is aggressively gaining market share.
However, we believe Amazon remains well-positioned to grab market share driven by its aggressive push with Twitch at the forefront, which threatens the duopoly of Google and Facebook.
According to eMarketer’s report, while Google is anticipated to reach $40 billion in its advertising business, Facebook is expected to hit $20 billion in 2018. However, according to Piper Jaffaray analyst, Amazon’s ad business is well poised to go beyond the success of Amazon Web Services (AWS) and surpass revenues by 2021.
Amazon is the fifth largest player in this space but given its strong efforts, it is expected to come in the third position by 2020. Further, it is anticipated to witness a surge of 64% in its ad revenues in 2018.
Zacks Rank
Amazon sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both Alphabet and Snap carry a Zacks Rank #3 (Hold), while Facebook has a Zacks Rank #4 (Sell).
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>