Amazon’s ad business is worth almost $3 billion. The company reported in third-quarter earnings today that “other” revenue, which is primarily made up of ad sales, is now worth $2.5 billion, an increase of 123 percent from the year prior.
In the second quarter, Amazon had said that ad revenue was up 129 percent to almost $2.2 billion.
In the past few months, Amazon took a major step in consolidating and simplifying its ad products, merging everything into one platform called Amazon advertising so advertisers can buy everything in the same place.
Marketers now see Amazon as a part of the triopoly, although the company’s overall advertising prowess lags far behind the other two legs of the triopoly, Google and Facebook. Google parent Alphabet, which reported that CPC on Google properties is down 28 percent, had total revenue at $34 billion for the quarter, with the majority of that being advertising. Facebook reports third-quarter earnings next week.
Amazon’s ad business, which some estimates project will reach $50 billion in the next decade, is still a small part of Amazon’s overall business, which was $56.6 billion this quarter. Perhaps because of that, both buyers and brands still have gripes about how slowly the platform is improving. They report that the company still has a way to go with the basics, with somewhat rudimentary toolsets, campaign data and some inconsistencies with how ads are bought and what data you get back.
According to data by Teikametrics, which helps brands advertise on Amazon, 32 percent of revenue for brands that sell on Amazon is now driven by advertising on Amazon. And brands have increasing ad spend overall on Amazon by 250 percent since the third quarter of 2017.
-
Digiday+ Research deep dive: YouTube holds strong as a reliable marketing channel for agencies and brands
YouTube might not be considered the most exciting marketing channel out there, but brands and agencies see the platform as a reliable marketing channel that delivers consistent success.
-
Pringles goes all in on social to put college athletes front-and-center for ‘March Mustache’ campaign
Pringles is turning to social media — particularly Instagram — to leverage some of the college athletes playing in the March Madness basketball tournament, with the goal of reaching college basketball fans on second screens.
-
Short-form video needs better monetization, creator funds aren’t the way to do it
Creator funds have almost been like a stepping stone before a more permanent solution is either considered or put into place.
-
SponsoredHow advertisers are leveraging omnichannel attribution and measurement to power CTV
Sponsored by MNTN Connected TV advertising has joined and expanded the larger ecosystem of campaigns that advertisers deploy. As such, omnichannel marketing strategies now encompass television and mobile devices, tablets and other screens such as out-of-home. And as customers engage across these different touchpoints, brands are seeking and moving their measurement and analytics efforts to […]
-
L’Oreal uses social listening, in-house teams to tap into beauty trends ‘at the speed of culture’
The beauty behemoth is turning to in-house teams to accelerate content production that taps into trends within days, rather than the weeks or months of traditional marketing and advertising timelines.
-
With Canva and Adobe’s new updates, the generative AI race enters the brand design space
Canva and Adobe are just two of several major design and visual platforms that are rapidly introducing new generative AI capabilities in the service of brands.
