Amazon’s online advertising business has significantly helped the tech giant grow its revenue by 11% in the second quarter, bringing in close to £9bn ($11bn). This was boosted by improved delivery speed and AI investments.
Amazon Ads’ impressive growth figures mark a 22% increase on this time last year, with the firm’s overall revenue climbing about £106 bn ($134.4bn) year-on-year. Crucially, the Bezos-owned outfit’s ad business has managed to remain resilient even in the face of a global digital ad market slump.
According to polling service StreetAccount, while Amazon’s advertising business had been predicted to bring in an impressive £8bn ($10.4bn) in the second quarter, it surpassed these expectations by almost £235m ($300m).
In an earnings call made on Thursday, CEO Andy Jassy said that Amazon was upbeat about the “progress [they’re] making on several key priorities”, and that its advertising partnership with Pinterest had helped “advertisers reach previously unaddressable audiences”.
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He also noted that “[Amazon’s] performance-based advertising offerings continue to be the largest contributor to [its] growth.” In addition, “the ramp up for Thursday Night Football [and] the ability for advertisers to tailor their spots by audience and create interactive experiences” were strong contributors to the high demand for the brand’s advertising services.
According to Jassy, these offerings “analyse a range of signals to help advertisers predict and reach highly relevant audiences with optimal cost-efficiency, which is critical to reaching desired audiences as the advertising industry moves away from third-party cookies.”
Amazon Ads now has a 7.3% market share of the worldwide digital ad market, which, although a significant slice, pales in comparison to Alphabet 28.8% and Meta’s 20.5% market shares respectively.
