$AMZN's Ad Biz Up Over $META & $GOOGL

CNBC headline: Amazon is bucking the online ad trend and just beat out Google and Meta



:pushpin: Amazon’s online ad business outpaced rivals in growth for the recent quarter.

:pushpin: Ad revenue jumped 18% in the quarter, while Facebook’s business shrank for the first time ever.

:pushpin: Amazon isn’t feeling much pain from Apple’s iOS privacy change, which has been a major problem for Facebook and Snap.

Social media giants Meta and Snap are telling investors that the online advertising market is experiencing some turbulence due to the economic slowdown. Amazon is sending a very different message.

While the bulk of its business comes from e-commerce and cloud computing, Amazon has built a robust online ad division by getting brands to pay big bucks to promote their products on the company’s website and app.

As of late last year, Amazon commanded 14.6% of the U.S. digital ad market, third to Google at 26.4% and Facebook at 24.1%, according to Insider Intelligence.

By the way, Amazon Prime has a new channel called FreeTV which is ad supported. I’m watching two shows on there now “Troppo” (set in Australia) and “Bosch Legacy.”

When I first started in on both shows, the ads, would run for 15 seconds, and there would only be one or two per episode. Once you get to Episode 3 or 4, they start pumping 15 second ads in 2 to 3 bunches, maybe once or twice per episode of TV. Not obnoxious ads either.

The No. 1 advertiser on Amazon FreeTV? Disney! Go figure.

Here are the growth rates in descending order for the top online ad platforms.

Amazon — 18%
Snap — 13%
Google — 12%
Pinterest — 9%
Twitter — 2%
Facebook — (1.5%)

More. I will also point out that on my $ROKU has four buttons for content providers: Netflix, Hulu, Disney and AppleTV, and yet here is $AMZN (prominently displayed next to $NFLX on my screen page)kicking butt on the ad front, with Disney advertising on Amazon’s new FreeVee channel. Also, the content on Amazon Prime’s new “FreeVee” (I’m just waking up from a nap and called it FreeTV above)is superior to any free Roku channel)and as I said, the ads are short and sweet and not obnoxious.

From the same article and note the table I placed in the OP doesn’t even mention $ROKU:


It wasn’t just the social media companies calling out the challenging ad environment. Streaming service Roku reported disappointing second-quarter results and said in a shareholder letter that the current ad market is reminiscent of the onset of the Covid-19 pandemic, “when marketers prepared for macro uncertainties by quickly reducing ad spend across all platforms.”

Meanwhile, Amazon provided a level of reassurance to Wall Street in giving guidance for revenue growth in the third quarter of 13% to 17%. That’s going to be a boon for the ad division, because “the ads business goes as the commerce business goes,” said Andrew Lipsman, an analyst at Insider Intelligence.

“Long term I think Amazon is building an absolute advertising juggernaut,” Lipsman said. “That engine is going to become transformative to advertising.”