A Noteworthy Performance Amidst Global Tensions Even as worldwide apprehensions about the Israel-Hamas conflict’s potential economic repercussions simmer, Amazon’s online advertising sector shines bright. Revealed in its latest financial disclosure on Thursday, the e-commerce behemoth announced a substantial $12.06 billion advertising revenue for the third quarter, effortlessly surpassing the prior year’s figures by 26%.
Beating the Market Predictions The market predictions, as collated by StreetAccount, had initially estimated Amazon’s ad revenue for the third quarter to stand around $11.6 billion. But Amazon, with its robust performance, comfortably exceeded these anticipations.
Amazon’s Grand Scale Expansion The digital marketplace witnessed Amazon’s overall quarterly sales soar by 13%, reaching a staggering $143.1 billion. As per insights from Insider Intelligence, Amazon’s advertising arm now commands a solid 7.5% slice of the global digital advertising pie. However, Alphabet still retains the crown with a hefty 28.4% market share, while Meta trails with a 20.1% stake.
Harnessing New Growth Avenues Amazon’s CEO, Andy Jassy, highlighted the company’s collaboration with the National Football League as a testament to its growth trajectory. With the ongoing second season, Amazon Prime Video’s broadcast of “Thursday Night Football” witnessed a viewer spike of 25% from the previous year. Emphasizing the rising advertising potential, Jassy noted, “It’s the sole game of the week, attracting advertisers as they aim to engage with the 13 million weekly viewers.”
Tapping into Untouched Territories Jassy further hinted at Amazon’s immense growth potential in the advertising domain, pointing out that the company has only “just begun to tap into” areas like video integrations and grocery store ads.
Benefitting from Apple’s Privacy Shift A significant propellant for Amazon’s thriving digital ad business has been Apple’s 2021 iOS privacy overhaul. This update impacted several social media giants, including Meta and Snap, pushing many advertisers to pivot their budgets from Meta towards Amazon, primarily due to perceived declines in Meta’s ad targeting efficiency post the Apple modifications.