Amazon Promoting generated $8.76 billion in Q2, up from $7.45 billion throughout the identical quarter in 2021.
The promoting progress price has slowed. It was up by half YoY by this level final yr, then grew by a 3rd, then by 1 / 4 and is now up by a fifth. Nevertheless it’s solely regular that the expansion price is slowing now that the baseline is so massive.
Amazon can also be persevering with to develop on high of its unusually excessive progress charges in 2021, whereas Google and Fb needed to warn buyers that year-over-year comparisons would look unusual, as a result of progress shot up final yr in comparison with 2020 after which tailed off this yr. Amazon noticed some the identical development, however was much more insulated from the dropoff.
“Our benefit is that we now have extremely environment friendly promoting [and] persons are promoting on the level the place clients have their bank cards out and are able to make a purchase order,” Olsavsky mentioned. “It’s additionally very measurable, so when firms wish to probably streamline or optimize their promoting spend, we predict our merchandise compete very properly in that regard.”
And since Amazon owns the bank card knowledge and the patron relationship, it could actually nonetheless optimize and attribute advert campaigns based mostly on deterministic conversions, which was Fb’s bread and butter.
The corporate additionally touted new advert platform merchandise throughout its quarterly investor name – a change from earlier calls throughout which Amazon execs acknowledged that the platform lagged different main gamers and required fundamental enhancements.
One new beta product is the Amazon Advertising Stream, an API that lets advertisers and businesses replace campaigns and ingest conversion knowledge at an hourly cadence.
Amazon’s Advertisements crew additionally collaborated with AWS on an insights product for the Amazon Advertising Cloud, which is Amazon’s knowledge warehouse and clear room product. Amazon Advertising Cloud is akin to Google’s Advertisements Knowledge Hub, and each are housed inside their respective guardian’s cloud platform.