Amazon advertising is now worth $2 billion

Shareen Pathak | April 26, 2018

Amazon advertising is now worth $2 billion
Amazon’s advertising power continues to grow. The Seattle-based e-commerce company reported in its first-quarter 2018 filing that “other” revenue — which it said “primarily includes sales of advertising services” — grew 132 percent year over year to reach $2 billion. In the fourth quarter of 2017, the ad business grew to about $1.7 billion, up about 60 percent year over year. That’s a massive jump for the company, which spent the past quarter making improvements to its advertising offering. Media buyers have reported the company has been running a series of attribution tests to see how its advertising stacks up against the Facebook-Google duopoly and that it’s also been testing application programming interfaces for the Amazon Advertising Platform with a small group of agencies, as it plans to let marketers manage their programmatic campaigns on their own. Speaking on the company’s earning call on April 26, CFO Brian Olsavsky said that “advertising continues to be a bright spot from a product standpoint and a revenue standpoint, and a strong contributor to profitability. It is a multibillion program.” In January, Amazon changed its accounting standards, moving some ad revenue into the “other revenue” line item, which led to, according to Amazon, an increase of $560 million attributed to that line item, the majority of which is ad sales.

Spotlight

The relationship between buyers and sellers is undergoing a major transformation. Social media and e-commerce have given buyers tremendous new power to research products, prices, reputations, and opinions—often before they even talk to the seller. To compete in this buyer-empowered market, bus


Other News
PROGRAMMATIC ADVERTISING

Hivestack, Clear Channel Outdoor Americas Partnership Brings Programmatic Buyers Additional Scale Across the U.S.

Hivestack, Clear Channel Outdoor Holdings, Inc. | September 21, 2021

Hivestack, the leading global programmatic digital out of home (DOOH) ad tech company announced a partnership with Clear Channel Outdoor Americas (CCOA), the U.S. based business of Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) one of the world's largest outdoor advertising companies. Through this new partnership, CCOA will offer advertisers a way to buy DOOH inventory programmatically through the Hivestack SSP, in addition to direct, across CCOA's nationwide digital footprint in the U.S. The partnership allows CCOA to operate PMP buys via the Hivestack SSP and Open Exchange through the Hivestack Ad Exchange. This partnership comes as marketers continue leaning furth...

Read More

PROGRAMMATIC ADVERTISING

Adsquare to Support Unified ID 2.0

Adsquare | September 20, 2021

Adsquare, the global audience and location intelligence company, will collaborate with Unified ID 2.0 to offer precision and measurement solutions for programmatic media buyers and publishers. Unified ID 2.0 is a new common currency and connective tissue across digital media for the open internet. The ID represents an upgrade to legacy identity solutions. Initially developed by The Trade Desk, Unified ID 2.0 is a soon-to-be open source, industry-wide initiative spanning hundreds of collaborative partners that operate across the open internet. The ID solution is based on hashed email addresses and phone numbers for use as an identifier for precise ad buying and m...

Read More

AD NETWORKS

Ampersand's Total TV Measurement Solution Offers Advertisers Insight Across Their Entire Multiscreen TV Investments

Ampersand | September 18, 2021

Ampersand, the audience-first TV advertising sales, data and technology company, announced today the availability of its Total TV Measurement solution for advertisers and agencies. This new capability allows Ampersand to offer brands as well as local advertisers the ability to unify and consolidate the measurement of audience-based media delivery across all of their TV investment channels – including network, spot and addressable– and activate across Ampersand's full footprint of multiscreen TV supply. Against the backdrop of today's fragmented television marketplace in which viewers access programming in live and time shifted environments, and on a variety...

Read More

SOCIAL MEDIA ADVERTISING

IRI Launches New Lift Measurement Solution for Facebook

IRI | September 17, 2021

IRI®, a fast-growing global technology leader in innovative solutions and services for consumer, retail and media companies, announced the launch of IRI Lift™ for Facebook, which will enable CPG manufacturers and retailers to measure the offline sales impact of their advertising campaigns across Facebook and Instagram. Expands IRI Lift coverage to digital advertising’s largest social channel Enables closed-loop measurement and optimization of social advertising impact for CPG retail sales using IRI’s unparalleled loyalty card data assets The new solution combines Facebook’s media exposure data with IRI’s vast poin...

Read More

Spotlight

The relationship between buyers and sellers is undergoing a major transformation. Social media and e-commerce have given buyers tremendous new power to research products, prices, reputations, and opinions—often before they even talk to the seller. To compete in this buyer-empowered market, bus

Resources

Events