Amazon has become a rising player in the advertising market, so much so that its presence as an advertising medium has been increasing and there are those who see it as a serious competitor against the dominance of the so-called duopoly (Facebook and Google). For now, Amazon has failed to catch up with either of these two giants, but its data shows a steady growth trend.The latest results from Amazon prove it. During the last quarter, the first of the financial year, the advertising business (based on the figures of the giant’s “other” division, of which they account for the majority of revenues) reached 3,910 million dollars. The amount is less than the 4.78 billion dollars with which it closed the fourth quarter of the year, true, but even so it is a positive figure.
The fourth quarter of the year Palau Email Lists was that of the Christmas campaign, a period on the rise in advertising, and it was also a period free of coronavirus, something that cannot be said of the first quarter of 2020.Comparing the data for the quarter with those for the same period in the previous year, the growth has been remarkable. The rise in advertising revenues has been 44%, maintaining the growth trend of the previous quarters. Year-on-year, in the fourth quarter it rose 41%, 44 in the third and 37% in the second.Impact of the coronavirus crisisAmazon’s own chief financial officer, its CFO, Dave Fildes, has assured that the quarter has been solid in terms of advertising revenue.
Amazon has not been left out of the cuts in advertising investment that the coronavirus crisis has generated.The company has acknowledged that they have seen some setback in advertisers (they have pushed back campaigns) and downward pressure on advertising prices. Even so, they assure that “it has not been as remarkable as perhaps others are seeing”, possibly, they theorize from the company, because they have maintained strong traffic. April, apparently, is looking solid.If we take into account that Amazon is being, in the context in which we find ourselves, one of the companies in a more resilient position (its business, let’s not forget, is selling online), it can be understood that it has a collateral effect on advertising.
What this tells us The data not only makes it clear that Amazon’s advertising business is doing well, but also that advertising has established itself as a solid source of income for the company. That is, Amazon can no longer be seen as a curiosity in the online advertising market, but must be seen as one more agent and as one with an increasingly high weight.The industry must bear it in mind when analyzing how the market operates. For advertisers, it is becoming one more stage to add to the advertising strategy (especially when what is sought is conversion into sales). For online platforms that live off ads, Amazon has established itself as just another competitor and one too solid not to end up hurting the positions they occupy.