Last week, on October 27, Amazon had announced third-quarter earnings. The company reported sales growth of 34 percent to $43.7 billion. This time last yea, Amazon reported #32.7 billion in sales.
The noteworthy part is Amazon’s “other” revenue, which is basically advertising. At the bottom of the Net Sales chart in the press release was this line item:
To Amazon, “other is defined to include “sales not otherwise included above, such as certain advertising services and our co-branded credit card agreements.” More than likely, we can say that ad ales for quarter were $1+ billion. This represents 58 percent year-over-year growth. Since Q2 of 2016 ad sales basically doubled.
Amazon CFO Brian Olsavsky said on the earnings call, “Advertising revenue continues to grow very quickly and its year-over-year growth rate is actually faster than the other revenue line item that you see there [in the ‘other’ category].”
Because Amazon is now on par with or surpasses Google in product search, this isn’t lost on retailers and brand advertisers. And due to the company’s intensifying effort to attract ad revenues from search marketers and agencies, Amazon chose to make its first appearance at SMX East in New York City this week, in order to promote Amazon Marketing Services advertising offerings.