Amazon’s main e-commerce business may be slowing down, but advertising continued to grow at a pace that beats digital ad rivals such as Google and Meta. Amazon Ads grew 19% year over year to nearly $11.6 billion in the fourth quarter, Amazon announced Thursday.
Amazon’s overall fourth-quarter sales, including e-commerce and cloud computing, increased 9% year over year to $149.2 billion. Amazon projected lackluster revenue in the current quarter, worrying investors that the company’s main e-commerce business has stalled, and sales growth has slowed in the cloud computing division. Its shares fell in extended trading.
Notably, Amazon’s advertising growth was lower than it had been in the third quarter last year, when it rose 30% year over year, which could signal some weakness, Andrew Lipsman, principal analyst at Insider Intelligence, said in an email. “Amazon Ads had a great quarter relative to the rest of the digital ad industry, and will continue to outperform in the coming quarters,” Lipsman said. “In the context of Amazon’s business, it decelerated following a resurgent Q3 and wasn’t as strong as it could’ve been given it had the benefit of an October Prime Day event in Q4 that it didn’t have last year. And given how much Amazon’s retail business depends on the ads business for profits, it simply didn’t help out as much as it could have.”
from Digital Marketing Education https://ift.tt/miYNHnW
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