Global digital retail giant Amazon reported better than expected results for its advertising business in the March quarter.
Advertising services jumped 23% to $US9.5 billion compared to a 9% lift to $127.4 billion for its overall business.
“Our advertising business continues to deliver robust growth, largely due to our ongoing machine learning investments that help customers see relevant information when they engage with us, which in turn delivers unusually strong results for brands,” says CEO Andy Jassy.
Amazon's global ad business will grow nearly 19% this year to $44.88 billion, according to forecasts by Insider Intelligence .
That would give Amazon a 7.5% share of the global digital ad market.
“Amazon's stronger-than-expected performance for its key profit centres of AWS and advertising indicate that the enterprise and the digital ad sectors may be turning the corner,” says Andrew Lipsman, principal analyst at Insider Intelligence.
“Recent cost-cutting measures also appear to be delivering material improvements to the bottom line, giving the company a much healthier outlook for the balance of the year as the consumer economy continues clawing its way back from recessionary pressures.
“For the first time in several quarters, Amazon may finally have a bit of wind at its back."
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