close
close

Amazon’s ad business grew 20% in Q2 – NBC New York

Posted on by darion

  • Amazon’s online advertising business brought in $12.77 billion in the second quarter, up 20% year over year but falling short of analysts’ expectations.
  • Amazon revealed the latest quarterly financial results for its online advertising unit on Thursday, when it released second-quarter results. The company’s total sales in the second quarter were $147.98 billion, down from analyst estimates of $148.56 billion.

Amazon’s online advertising business brought in $12.77 billion in the second quarter, up 20% year over year but falling short of analysts’ expectations.

Amazon revealed the latest quarterly financial results for its online advertising unit on Thursday, when it released second-quarter results. The company’s total sales in the second quarter were $147.98 billion, down from analyst estimates of $148.56 billion.

Analysts had expected Amazon to report online ad sales of $13 billion. The company’s online advertising unit is still small compared to its core online retail business, but it is growing rapidly and is disrupting the digital advertising industry, which is still dominated by Meta and Alphabet.

Indeed, Meta’s online ad sales continue to grow after a difficult 2022, when Apple rolled out an iOS privacy update that weakened the company’s ad targeting system, much like it did to smaller social media rivals like Snap and Pinterest.

On Wednesday, however, Meta reported second-quarter results that beat expectations and indicated the company had rehabilitated its ad tech business. Indeed, Meta said overall second-quarter sales, most of which are advertising, rose 22% year over year to $39.07 billion.

Meta’s revenue growth was twice that of rival Google’s advertising business. When Alphabet reported its quarterly earnings last week, the company said its Google advertising unit saw second-quarter sales increase by $64.6 billion, an 11% year-over-year increase.

Alphabet said at the time that its YouTube ad sales in the second quarter were $8.66 billion, which was worse than analysts’ expectations of $8.93 billion.

To watch:3-Stock Market Lunch: Meta, Amazon and Intel