• Marketing Land
  • Sections
    • CMO
    • Social
    • SEM
    • SEO
    • Analytics
    • Display
    • Retail
    • MarTech
    • Resources
    • More
    • Home
  • Follow Us
    • Follow
  • Marketing Land
  • CMO
  • Social
  • SEM
  • SEO
  • Analytics
  • Display
  • Retail
  • MarTech
  • Resources
  • More
    • Follow
  • SUBSCRIBE

Marketing Land

Marketing Land
  • CMO
  • Social
  • SEM
  • SEO
  • Analytics
  • Display
  • Retail
  • MarTech
  • Resources
  • More
  • Home
  • Newsletters
  • Home

Amazon’s high-flying advertising growth levels out

Amazon's advertising businesses grew around 36% year over year in Q2 2019.

Ginny Marvin on July 26, 2019 at 5:21 pm
  • More

Amazon’s advertising business had it’s second $3 billion quarter in the second quarter of 2019. (Or close to it — Amazon advertising revenues make up the majority of an “Other” revenue category in its earnings reports.) The first was the holiday fourth quarter last year.

While $3 billion in an off-holiday, non-Prime Day quarter is a milestone, growth is coming back down to earth. Second-quarter ad revenue increased 37% from the previous year, the second-straight quarter of relatively mild growth compared to the triple-digits Amazon recorded in much of 2018.

Not surprisingly, Amazon’s biggest advertising market continues to be North America, the only market where several of the latest advertising tools are available. But, the company is eyeing international advertising growth with product expansions and measuring “around improving relevancy on each of those geographic websites,” said Dave Fildes, Amazon director of investor relations, on the earnings call.

On the Sizmek acquisition. Amazon acquired Sizmek’s ad server and dynamic creative optimization in June. The acquisition will enable advertisers to use Amazon’s data from searches and purchases to target audiences beyond its own properties. Sizmek continues to operate independently, but executives said they’re looking long-term at the investment.

“We’re invested in the long-term success of Sizmek. And again, Amazon advertising and Sizmek has many mutual customers, so we know how valued these prudent solutions are to the customer base,” said Fildes. “So we’re looking forward to working with that team and we’ll share more updates as we invent and create new opportunities to serve advertisers in the future.”

On video advertising. Amazon continues to focus on video content. In fact, Amazon’s marketing expenses rose 48% year-over-year in the second quarter, which was in part due to “more and more advertising as we roll out devices and Prime Video — new Prime Video content, in particular internationally,” said Brian Olsavsky.

That should mean more brand opportunities as Amazon makes more video supply available across its properties, including OTT video supply, the company said. That includes adding supply via Fire TV apps, IMDb TV, Amazon Publisher service integrations and simplifying inventory access for third-party apps, said Fildes.

Amazon’s video and display offerings across its owned properties and networks, can be targeted using Amazon data, and open up advertiser demand beyond Amazon vendors and sellers.


Opinions expressed in this article are those of the guest author and not necessarily Marketing Land. Staff authors are listed here.



About The Author

Ginny Marvin
Ginny Marvin is Third Door Media’s Editor-in-Chief, running the day to day editorial operations across all publications and overseeing paid media coverage. Ginny Marvin writes about paid digital advertising and analytics news and trends for Search Engine Land, Marketing Land and MarTech Today. With more than 15 years of marketing experience, Ginny has held both in-house and agency management positions. She can be found on Twitter as @ginnymarvin.

Related Topics

AmazonAmazon: Amazon Advertising

We're listening.

Have something to say about this article? Share it with us on Facebook, Twitter or our LinkedIn Group.

Get the daily newsletter digital marketers rely on.
See terms.

ATTEND OUR EVENTS

MarTech 2021: March 16-17

MarTech 2021: Sept. 14-15

MarTech 2020: Watch On-Demand

×

Attend MarTech - Click Here


Learn More About Our MarTech Events

February 23, 2021: SMX Report

April 13, 2021: SMX Create

May 18-19, 2021: SMX London

June 8-9, 2021: SMX Paris

June 15-16, 2021: SMX Advanced

August 17, 2021: SMX Convert

November 9-10, 2021: SMX Next

October 2021: SMX Advanced Europe

December17, 2021: SMX Code

Available On-Demand: SMX

×


Learn More About Our SMX Events

White Papers

  • The State of Local Marketing Report 2020-2021
  • Quality CRM Data: The Key to Delivering Great Customer Experiences
  • How the Microsoft Search Network Can Maximize Your Search Campaigns
  • The Marketer’s Playbook for Customer Acquisition
  • How To Optimize SEO With UGC
See More Whitepapers

Webinars

  • How to Avoid the Digital Transformation Trap
  • How to Build a Marketing System of Record
  • Meet BIMI: The brand-boosting email security marketers must have for 2021
See More Webinars

Research Reports

  • Local Marketing Solutions for Multi-Location Businesses
  • Enterprise Digital Asset Management Platforms
  • Identity Resolution Platforms
  • Customer Data Platforms
  • B2B Marketing Automation Platforms
  • Call Analytics Platforms
See More Research

h
Receive daily marketing news & analysis.
Marketing Land
Download the Marketing Land app on iTunes Download the Marketing Land App on Google Play

Channels

  • MarTech
  • CMO
  • Social
  • SEM
  • SEO
  • Mobile
  • Analytics
  • Retail
  • Display

Our Events

  • MarTech
  • SMX

Resources

  • White Papers
  • Research
  • Webinars
  • MarTech Conference
  • Search Marketing Expo

About

  • About Us
  • Contact
  • Privacy
  • Marketing Opportunities
  • Staff
  • Connect With Us

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • Newsletters
  • Instagram
  • RSS
  • Youtube
  • iOS App
  • Google Play

© 2021 Third Door Media, Inc. All rights reserved.

Your privacy means the world to us. We share your personal information only when you give us explicit permission to do so, and confirm we have your permission each time. Learn more by viewing our privacy policy.Ok