Amazon’s $43B Ad Business, Explained
Amazon’s ad business has grown significantly in recent years, thanks to its first-party data. In Q1 2022, Amazon officially separated its ad business in company filings, and its ad platform is currently on an annual revenue run rate of ~$43B, which is more than the combined revenue of Bing, Snap, Twitter/X, Pinterest, and TikTok. Amazon’s advertising business is worth about $125 billion, more than Nike or IBM, Morgan Stanley estimates. At its core are ads placed on Amazon.com by makers of toilet paper or soap that want to appear near product search results on the site. Amazon’s advertising services leverage what the company knows better than anyone: consumers’ online buying habits. Amazon’s demand-side platform enables tailor-made advertising experiences created together with Amazon Ads account executives. Amazon’s online advertising business continues to grow fast, increasingly challenging digital ad titans like Meta and Google. Amazon now holds 7.3% of the overall online ad market, trailing Alphabet’s Google and Meta-owned Facebook and Instagram.
Sources:
- [1] https://www.readtrung.com/p/amazons-43b-ad-business-explained?r=kpgl&s=09.&utm_campaign=post&utm_medium=web
- [2] https://www.readtrung.com/p/amazons-43b-ad-business-explained
- [3] https://www.nytimes.com/2019/01/20/technology/amazon-ads-advertising.html
- [4] https://advertising.amazon.com/library/guides/basics-of-success-understanding-amazon-advertising
- [5] https://www.cnbc.com/2023/02/02/amazons-advertising-business-grew-19percent-unlike-google-meta.html
- [6] https://www.ben-evans.com/benedictevans/2023/3/6/ways-to-think-about-amazon-advertising
- [7] https://www.junglescout.com/blog/amazon-advertising-guide/
Citations:
[1] https://www.readtrung.com/p/amazons-43b-ad-business-explained?r=kpgl&s=09.&utm_campaign=post&utm_medium=web
[2] https://www.readtrung.com/p/amazons-43b-ad-business-explained
[3] https://www.nytimes.com/2019/01/20/technology/amazon-ads-advertising.html
[4] https://advertising.amazon.com/library/guides/basics-of-success-understanding-amazon-advertising
[5] https://www.cnbc.com/2023/02/02/amazons-advertising-business-grew-19percent-unlike-google-meta.html
[6] https://www.ben-evans.com/benedictevans/2023/3/6/ways-to-think-about-amazon-advertising
[7] https://www.junglescout.com/blog/amazon-advertising-guide/