The company now earns 49% more than in the same quarter of last year thanks to its ads
Amazon has gone from being a curiosity in the advertising market to becoming a prominent player, so much so, in fact, that analysts see it as one of the few names that could break the power of the duopoly, the group formed by Google and Facebook and that dominates the online advertising market. Therefore, the advertising figures that Amazon moves in advertising revenue have become one more element to take into account to understand how the market is.
How much money does Amazon bill for advertising? The truth is that the exact numbers cannot be known, because the giant is not yet including those amounts in its presentation of financial results in a disaggregated manner. Amazon is not clear which numbers are exclusively generated by advertising. However, the analytics use data from the division into which ad revenue is embedded as a benchmark. Although more things go into these accounts, ads are the main source of income for that division.
Thus, it can be determined that Amazon has earned in the last quarter for which data is available, the third, 8,090 million dollars in ads. It is the turnover figure for your “other” division. The numbers are very high, although slightly bittersweet. Analyst expectations were slightly higher and annual growth slightly lower than in previous quarters. This led to the numbers being viewed critically in markets.
However, and despite this, the amounts imply growth: compared to the investment in advertising that Amazon capitalized last year, that of the third quarter of this year was 49% more.
Despite the fact that the problems of the distribution chain affect the giant and that purchases in stores are increasingly common, which means the appearance of a clear competitor for the attention of their potential buyers, advertisers continue to want to position themselves on Amazon . Your advertising products continue to arouse interest.
It may, of course, that these challenges work as a drag on the Christmas campaign, which could also weigh on the investment in advertising. Amazon sees things in a more optimistic way: “we are seeing strong growth,” said the giant’s CFO, Brian Olsavsky, in the presentation of results. “We are giving new products, new ways to advertise, new ways to highlight your brands,” he assured, noting that he is “resonating” with advertisers.
The giant is not only positioning its ads more on Amazon (this Christmas, in its .com version, it is trying to capitalize on live shopping), but it is also doing it in other properties.
The company has just expanded its UK linear channel offering of IMdB TV, its free streaming service with ads. But, above all, it has expanded its advertising portfolio on Twitch, a platform on which it has firmly bet in recent years and which already has a loyal audience (and in which it has been difficult to position its advertising news).
In both scenarios, Amazon is putting more ads and capitalizing more on its properties and its audience.