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Amazon increases its advertising revenue by 20% but does not reach what the market expected

During the second quarter of the year, Amazon totaled more than 12.7 billion dollars in advertising, 20% more than last year but less than the 13 billion expected by analysts.

Most of it comes from product ads and at the moment there is no data on the introduction of campaigns on Prime Video.

But the commercial traction of that platform can improve significantly with the arrival of the rights to broadcast NBA games next year.

The CEO, Andy Jassy, ​​did not offer more details on the current state of planning in that service, whose massive unlocking of inventory for advertising has put significant downward pressure on prices throughout the sector.

He only seemed optimistic about the response of agencies and advertisers to "the differentiated value we offer with our content, reach, signals and advertising technology" after the company's first presentation at upfronts in May.

He also noted the growing weight of advertising's contribution to the company's profitability, both in North America and internationally.

This has helped operating profit to soar by 91% to 14.7 billion, on a total turnover of almost 148 billion, which was also below expectations despite the 10% increase.

In any case, the 20% growth in Amazon's advertising business is practically double the 11% reported by Google and exceeds the 19% reported by Microsoft.

It is only slightly below the 22% reported by Meta in the same period. But the comparison with last year shows significant improvements for all of these rivals and a setback for the e-commerce giant, which then increased its revenue from advertising by 24%.

https://dircomfidencial.com/marketing-digital/amazon-mejora-un-20-su-facturacion-publicitaria-pero-no-alcanza-lo-esperado-por-el-mercado-20240802-1638/

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