Amazon's ad revenue reached nearly $ 2.2 billion in the second quarter, an increase of 129 percent over the prior year. Sales were, as always, included in the Other position, which is primarily ad sales.
In the first quarter, Amazon indicated ad revenue was up 132 percent year-over-year to reach nearly $ 2 billion.
It was a time of constant growth for the e-commerce giant. Many marketers now see Amazon as their third biggest media partner behind Facebook and Google, especially with activities with a lower funnel. As Amazon provides a clearer understanding of what is actually being sold, the advertising product is of particular interest to advertisers seeking better attribution.
"Stepping back, [advertising is] is now a multi-billion dollar business, and we see strong acceptance across Amazon vendors, sellers, authors, and third-party advertisers," said Chief Financial Officer Brian Olsavsky on the profits of the company company. He added that improving the usability of his tools for advertisers includes more painful issues, such as improving the usability of his tools for advertisers, providing smarter customer recommendations and automating the process as much as possible. " We also believe the measurement will be important for advertisers to understand what they're achieving on our properties."
While Amazon continues to bolster its agency development arm, it is now coming closer to brands for the first time, looking for direct offers. HP and Lego are two brands that work directly with Amazon, both through AMS and through the internal media team of the Amazon Media Group.
It's a question that comes up even during the reporting season for agencies. Publicis analysts in the second quarter specifically ask how the rise of Amazon ̵
"It is clearly a very strong challenger to the duopoly of Google and Facebook in digital advertising, "said Steve King, CEO of Publicis Media. "At one level, it makes the digital environment much more complex and it's a good business opportunity for us."
King added that Amazon is more than advertising – brands need to compete for pricing, reviews and logistical delivery issues meaning that brands need a deeper understanding of customers in order to be able to navigate them. He added that the majority of Publicis customers now include Amazon in their media plans.
Google's parent company Alphabet reported $ 28.1 billion in ad revenue, with 26 percent total revenue at $ 32.7 million
According to the Ad Tracker Standard Media Index, Amazon's advertising revenue is against national advertisers – these are big Fortune 500 brands – increased 36 percent over the previous year. The majority – about 74 percent – comes from display ads in the year to date.
Amazon's total second-quarter revenue was $ 52.9 billion, missing estimates.
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