Amazon’s advertising services business has recorded 22 per cent year-over-year growth in the second quarter of this year.
That’s a drop from the 23 per cent growth it saw in the two previous quarters but it still represents impressive growth for the business as it looks to diversify away from its traditional delivery business.
This quarter, Amazon introduced improved machine learning models to help advertisers reach previously unaddressable audiences with Amazon Ads. The company said it expects this to become even more important as adland moves away from third-party cookies.
Amazon’s overtures to the digital advertising industry, such as its partnership with Pinterest, seem to be working. Similarly, it partnered with Omnicom this quarter to use Amazon Web Service’s (AWS) generative AI to power its campaign development including creative briefs, media plans, ad creative, audience segmentation, and performance measurement.
“It was another strong quarter of progress for Amazon,” said CEO Andy Jassy.
“Our AWS growth stabilized as customers started shifting from cost optimization to new workload deployment, and AWS has continued to add to its meaningful leadership position in the cloud with a slew of generative AI releases that make it much easier and more cost-effective for companies to train and run models (Trainium and Inferentia chips), customize Large Language Models to build generative AI applications and agents (Bedrock), and write code much more efficiently with CodeWhisperer. We’re also continuing to see strong demand for our advertising services as the team keeps innovating for brands, including the ramp up for Thursday Night Football with the ability for advertisers to tailor their spots by audience and create interactive experiences for consumers. We remain excited about what lies ahead for customers and the company.”
The company’s AWS business has continued to grow, seeing a 12 per cent bump in sales year-over-year.
