Digital Smiles
Amazon's third quarter of 2023 saw a huge success, with its advertising services generating a total of $12.06 billion - a 26.3% increase from the same period in 2022. This is significantly better than what Wall Street had predicted, with analysts expecting a 21% year-on-year increase. This success is attributed to Amazon's collaboration with a number of publishers and brands, as well as the introduction of new AI capabilities. This performance is the latest sign of the digital advertising sector's resurgence. Earlier this week, Meta and Snap also reported large digital advertising revenue, which should instil confidence amongst marketers and increase ad spending during the all-important holiday season in Q4. Ad revenue for Amazon includes sales of advertising services to sellers, vendors, publishers, authors, and third parties through programs such as sponsored ads, display ads and video advertising. Amazon's partnerships for this quarter are with publishers such as BuzzFeed, Hearst Newspapers, Pinterest, Raptive, Ziff Davis' Lifehacker and Mashable. AI has been a major part of Amazon's success, with the retail giant introducing a generative AI digital assistant in India to assist small businesses in setting up an online store. Amazon also released its Supply Chain service, a fully automated service for sellers to transport products from manufacturers to customers. Overall, Amazon's exceptional performance in the third quarter is a great sign for the digital advertising sector, with its success being an indication of the trust that is being rebuilt between marketers and the industry. With the holiday season just around the corner, we can expect to see an increase in ad spending in the next quarter.
Originally reported by Martech: https://martech.org/amazon-ad-services-revenue-up-26-to-12-billion-in-q3/
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