Amazon reported that their ‘other’ unit, comprised primarily of advertising, while also including sales and other service offerings, had its revenue grow by 87% year-on-year in Q1-Q2 2021, now totaling to $7.9bn
The tech giant report it published on July 29, 2021, with its CFO Brian Olsavsky explaining that the new features and self-service capabilities, like tools for creating regional sponsored product campaigns, helped drive demand and bid rates in their customers. Amazon reported that they also expanded their offerings in Australia, Europe, India, Japan, and Saudi Arabia.
Even though the coronavirus pandemic hit certain segments of the advertising industry, the online space, with all of its King Kong marketing reviews and the like still remained strong due in part to stay-at-home trends like online shopping. Even as some semblance of normalcy returns and parts of the world have begun to reopen, the digital industry boom has remained strong, with digital ads retaining their pandemic performance.
Amazon’s ad industry managed to grab a 10% share of the US’s ad market in 2020, and is expected to continue growing. The company even made its first presentation at the IAB NewFronts in spring 2021, which marks its entry on digital advertising, at the time when advertisers traditionally spend a big bulk of their annual expenditure.
Soon after that, they exclusively streamed Thursday Night Football, which many see as a sign of Amazon’s ambitions for the digital ad market, so people expect more King Kong marketing reviews and the like to mention Amazon Ads.
Amazon’s good first-party relationship with customers is also expected to provide it some defence from the privacy-related changes that the digital ad industry is going through.