According to a report recently released by Pivotal Research, Amazon is expected to grow more than 20% by the end of 2019. According to analyst Brian Weiser, in a note he sent to his clients late Sunday, Amazon currently holds the mantle of being the largest online retailer in the world, but at the same time, the retailer has much more growth potential ahead.
Weiser emphasized that although the retailer is massive in nature, its growth potential and opportunities are unconstrained due to its masterful ability to capitalize on both consumer and IT department spending habits.
Weiser is known for his spot on predictions of troubles for Snapchat and Facebook. He stated that the arena of advertising and the different streams involved gives Amazon the potential at massive growth in the new year.
To put into perspective just how lucrative advertising has become for Amazon, in 2018 their revenues from just advertising generated an estimated $9 million, the majority of which was from the United States alone.
Weiser is also predicting that by 2023 Amazon will be in third place behind only Google and Facebook in digital advertising revenue generation. Although it will hold a strong third place, Amazon is not expected to generate anywhere near the annual revenue of $215 billion that Google or the $59 billion that Facebook is expecting to see.
It is also worth noting that Weiser feels that brick and mortar stores are becoming, and will continue to become, very vital to the growing success of Amazon. Many analysts, like Weiser, feel that Amazon’s continued upsoar in success will be dependent on it bolstering its physical presence. This is where the connection with brick and mortar stores will come into play—and may very well be a determining factor in Amazon’s continued growth.