Amazon's Advertising Business: The Fastest Growing With $2.2 Billion In Revenue

26/07/2018

Amazon's advertising business reached an all time high since its first inception, hitting $2.2 billion in revenue, a growth rate outpacing even the most optimistic forecasts.

This is more than a double if compared to 2017, when the company's ad sales were at $945 million.

It was reported that Amazon's second-quarter results was again growing, but this time at a staggering 132 percent. The company's gross sales, including global retail sales, AWS, advertising and subscriptions, totaled $52.9 billion, an increase of 39 percent year over year.

This resulted in profits at $2.5 billion, or up about $200 million at the same time in 2017.

"Advertising is starting to make an impact on gross profit," said Brian Olsavsky, Amazon's chief financial officer. "It's now a multibillion-dollar business for us. We're seeing strong adoption across a number of fronts."

Amazon

Amazon' main business isn't on selling ads, as the company refers to it as "other" revenue category. But with the huge profit it is generating, the company is making some priorities to expand its ad technology to bring more buyers into the platform so that they can promote product on its websites and off.

This includes the creation of better tools for advertisers to buy ads and better measure their ads' performance.

"We're uniquely positioned to show them the direct benefit of their advertising," continued Olsavsky.

Amazon's ad platform's revenue is about a tenth of what Google and Facebook earned, and it still has improvements to do. But still, the company has proven capable of differentiating itself from others, and became a contender to both Google and Facebook in the online advertising industry.

With the company's stock has more than tripled in the past three years, has made founder and CEO Jeff Bezos the world's richest person with more than $100 billion in net worth.