"In the third quarter, net sales reached $180.2 billion, with AWS contributing $33 billion. However, Wall Street and investors often overlook another segment: Amazon's advertising business. This unit, which includes sponsored products, display ads, and streaming video ads, posted $17.7 billion in revenue for the quarter, up 23.5% year-over-year. Though smaller than e-commerce or cloud, advertising is growing faster and could become a key contributor to both top-line expansion and bottom-line strength."
"The business benefits from Amazon's vast ecosystem. Sponsored ads on the shopping platform allow brands to target users based on search and purchase data, yielding high returns. Margins here rival AWS, as advertising requires minimal incremental costs. Expansion into connected TV and partnerships, like with Roku ( NASDAQ:ROKU ) and Disney ( ), have broadened Prime's reach. In the third quarter, this helped advertising become Amazon's fastest-growing major segment for multiple quarters."
Amazon posted $180.2 billion in third-quarter net sales with AWS contributing $33 billion. Advertising revenue reached $17.7 billion, up 23.5% year-over-year and marking the third straight quarter of accelerating ad growth. Ad growth outpaced AWS's 20% rise and the company's overall 12% revenue increase. The ad unit includes sponsored products, display ads, and streaming video ads and benefits from minimal incremental costs, producing margins that rival AWS. Expansion into connected TV and partnerships with Roku and Disney expanded Prime's ad reach, while Prime Video's ad-supported tier scaled audience rapidly toward projected global ad revenue above $60 billion.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]