Online advertising sales are growing in 2017, and that growth has been fueled by the emergence of an increasing number of brands, according to research from consultancy firm Ashford.
Online advertising revenue was $11.7 billion in 2017 compared to $9.6 billion in 2016, according the research.
That increase in revenue was driven by an increase in online sales by $4.2 billion, according data from Ashford compiled by market research firm eMarketer.
E-commerce sales, meanwhile, grew by $8.2 million in 2017 and by $2.4 million in 2016.
That growth was driven mainly by an influx of brands and by a sharp increase in the number of online advertising campaigns that advertisers were able to buy, according eMarketers.
While the overall increase in advertising revenue may not seem like much, it’s enough to make a dent in the bottom line.
“The growth is a sign of growth, especially in the digital space, where it’s not as clear-cut as it is in the retail space,” said Matt Miller, an analyst at eMarkets.
“If you’re not in the online space, you’re a bit of a penny stock, and in the offline space you have to be careful because there’s a lot of competition.”
Online advertising sales account for nearly $5 billion of all ad revenue generated in the United States, according a new report from Kantar Worldpanel ComTech.
That’s up $4 billion from last year.
This growth is largely driven by brands that are offering free, ad-free products and services.
The rise in online advertising revenue is also a boon for Amazon, which has seen an average monthly revenue increase of 22% from 2015 to 2017, according Kantar.
Kantar estimates that Amazon will earn $17.5 billion in ad revenue this year.
That includes an increase of $1.2 for the free shipping offer and an increase for online advertising.
It also includes an $8 billion increase in Amazon Prime membership fees, an increase to $6.9 billion for Prime Video and $3.5 for Prime Music.