Amazon ad business in Q2 2018 grows 132% Y-o-Y to $2.2 bn
Amazon.com reported a profit of $2.5 billion. Revenue grew by 39% YoY to $52.89 billion
Amazon has reported a growth of a whopping 132% YoY in its advertising business in Q2 2018. The company reported that it earned $2.2 billion from the ad business in comparison to the $945 million it made from the business in Q2 2017. Amazon outdid analysts’ expectations of $2.1 billion.
Overall, Amazon.com reported a record profit of $2.5 billion for the quarter. Revenue grew by 39% YoY to $52.89bn. Brian T. Olsavsky, CFO, Amazon.com, attributed Amazon.com’s strong growth in part to the advertising business in addition to Amazon Web Services.
Speaking about the ad products that have been successful, Olsavsky said, “We have hundreds of thousands of emerging and established advertisers. And they're using our services to achieve their marketing goals – whether that's to drive new brand awareness, discovery or ultimately purchase decisions on our site.”
He added that Amazon.com is now trying to tackle the main pain points for marketers. “Our priorities include improving the usability of our tools for advertisers, helping make smarter recommendations for customers. We're doing a lot of work on automating the activities that the advertisers need to do, and continue to invent new products for those advertisers.”
He also recognised that Amazon.com needs to improve its measurement processes. Marketers complain that much like Google and Facebook, Amazon.com too is a walled-garden, which does not allow for any third-party measurement. “We're focused on our measurement capabilities, so advertisers understand what outcomes they're driving on our properties. And we think that we're uniquely positioned to show them the direct benefit of their advertising,” he said.
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