Amazon Shocks Ad Industry Beating Out Big Tech Rivals

Amazon Shocks Ad Industry Beating Out Big Tech Rivals

In Amazon’s fourth-quarter results, the companies advertising revenue and sales have been posted for the first time.

In the quarter, the tech conglomerates advertising services grew 32 per cent to $US9.7 billion ($A13.7 billion).

For several years, Amazon has kept the details of its advertising business investments private.

Amazon previously included advertising revenue in the ‘other business’ section of its financial statements.

However, now that results have been published, it’s been revealed that Amazon’s ad business is at a scale larger than cloud rival Microsoft, Snap and Pinterest.

More impressively, Amazon’s advertising revenues have trumped its rivals despite its ad business representing only 7 per cent of total company revenue.

Although Amazon’s ad results are stellar, it’s worth noting that the company hasn’t disclosed operating income for its advertising services segment.

As previously reported by B&T, unlike other companies which have been severely affected by Apple’s privacy changes, Amazon’s ability to reach consumers is largely unchanged.

Brian Olsavsky, Amazon, CFO, said, “I’m excited to continue innovating in areas like sponsored ads, streaming video and measurement.”

“When we create great customer experiences, we build better outcomes for brands.”

For the full year of 2021, Amazon took in $31.2 billion ($A44.1 billion) in advertising revenue which paired with other positive signs, has seen Amazon stock soar 13.5 per cent at last Friday’s close.




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