It indicates significant growth in the ad unit a company Amazon indicates that its revenue contribution is now two times greater than Snap, Twitter, Roku and Pinterest combined, and is growing 1.7 times faster, according to For a company Loop Capital.
Revenue from Amazon’s so-called “other” unit, which mainly consists of ads but also includes sales related to service offerings, grew 77 percent year on year to more than $ 6.9 billion in the first quarter, the company reported last month.
Industry moves, such as Apple’s recent software changes that make it easier for users to prevent advertisers from following them, appear to be: Standing ready to add more fuel to growth Amazon.
Amazon has a massive amount of in-depth consumer data, and the company said earlier this year: It has more than 200 million global members in the Prime program.
And with the entry of changes App Tracking Transparency With Apple coming into play, Amazon data will likely become a scarce and valuable commodity for marketers.
Loop Capital analysts wrote in a note: Ads via Amazon’s traffic-fueled e-commerce sites and unparalleled user stats provide great value to sellers and brands.
They also cited the company’s presentation at the recent IAB NewFronts that discussed the company’s efforts in the broadcast space.
Ad-supported video streaming content now reaches more than 120 million viewers per month, Amazon said earlier this month, driven by platforms like Twitch.
Analysts write: With Amazon technology, scale, hardware access, and consumer connectivity, we believe these newest efforts are well positioned to become a very important contributor in a relatively short period of time.
Amazon generated $ 22.4 billion in advertising revenue in the past 12 months, up 65 percent year-on-year.
That number was 2.4 times the combined total of $ 9.3 billion in revenue for the mid-sized ad platforms Snap, Twitter, Roku and Pinterest, which grew 38 percent over the same timeframe.
Amazon is close to closing a deal to acquire MGM Studios, co-owner of the James Bond series and other film and TV series, for between $ 8.5 billion and $ 9 billion.
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