Amazon’s advertising business, now the third largest after Google and Meta, grew 27% to $US14.65 billion in the December quarter.
The giant online retailer's overall net sales increased 14% to $170 billion in the three months top December, which Amazon described as a record-breaking holiday shopping season.
The results beat market expectations.
“Our advertising services continue to improve and drive positive results,” says Andy Jassy, Amazon CEO.
Amazon launched advertising tools to help brands connect with customers:
- A generative AI solution to help brands produce lifestyle imagery that can improve the performance of their ads while also making them more engaging.
- A sponsored TV offering to enable brands that sell in Amazon’s US store to run streaming TV ad campaigns with no minimum spend on Amazon Freevee, Twitch, and third-party streaming services through Fire TV apps.
- 15 new advertising capabilities, including enhanced audience insights and advanced campaign planning, activation, and optimisation controls that help advertisers more efficiently reach relevant audiences and drive meaningful business outcomes.
- Amazon Publisher Cloud, a tool built on AWS Clean Rooms’ secure data collaboration environment, that enables publishers to analyse first-party data together with Amazon Ads insights and offer custom media buys for advertisers that improve campaign performance.
Google has also released its December quarter results, with advertising revenue at YouTube up 15% to $US9.20 billion.
Overall Google revenue was up 13.5% to $86.31 billion.
“We see continued upside for long-term advertising growth,” says Philipp Schindler, chief business officer for Google.
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