Amazon’s advertising network, already worth billions of dollars, is likely to become its next great business. With its current trajectory, Amazon’s ad business is an unbelievable profit generator.
As part of its latest financial results on Thursday, the online retail giant said that its ad business has recorded more than $12 billion in revenue globally during the third quarter, marking a 25% jump year-on-year. In contrast, Google and Meta have registered about 10 and 15 percent year-on-year growth in advertising revenue for the same quarter.
In 2022, the online retailer earned a whopping $38 billion from ads alone, commanding a nearly 7 percent share in the digital ad market.
Amazon’s ad business continues to boom even amid growing concerns that the Israel-Hamas war could negatively impact the world economy. Besides, it has been largely unaffected by privacy tweaks made to Apple’s operating system, experts shared.
Online retail is growing at a stupendous pace, every eCommerce player is looking for that alternate revenue and it does not stop with shopping alone. Travel, airlines, luxury, and holidays, all are gunning for that pie and the ones who have a clear AdTech solution are winning. In India, Flipkart and Amazon both have massive traction,” Rammohan Sundaram, President – Integrated Media, DDB Mudra Group, told e4m.