Amazon’s ad business grows 123 percent in third quarter, to $2.5b
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.
‘I’m worried about my job’: Confessions of a stressed out ACD on homeschooling his son and working from home
An associate creative director is stressed about overseeing his son's remote learning this fall while successfully meeting client needs.
‘No one is rushing to commit Q4 budgets’: With its future in the U.S. increasingly uncertain, media buyers are holding back spending on TikTok
The executive order signed late last week has now spurred advertisers who were considering testing the nascent platform to steer clear for the time being, especially since TikTok now has until September 20th to sell its U.S. operations or face the consequences of President Trump’s order.
Member Exclusive‘Like being conned’: Agency employees say that fake job listings are making the already difficult job market even harder
If you ask agency talent about the job search you’ll hear them bemoan alleged fake job postings as an industry scourge.
SponsoredPublishers are creating new risk protections to guarantee vendor payments
As the industry navigates the continued impacts of COVID-19, here’s the questions publishers should ask their programmatic partners or ad management providers to protect themselves from clawbacks and lost revenue.
WTF is redirect tracking?
Redirect tracking offers an alternative to the third-party cookie, which is why web browsers are clamping down on it.
‘Let’s put it out in the world’: Why Code and Theory is creating its own thought leadership publication, Decode
The publication gives the agency a home for opinion and thought leadership pieces from its staffers, many of whom have been writing pieces for industry publications in recent years.