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Amazon’s Online advertising business revenue in the second quarter was US$12.77 billion, an increase of 20% year-on-year, but lower than analysts’ expectations.
Amazon disclosed the latest quarterly financial results for its online advertising unit Thursday when it reported second-quarter earnings. The company’s overall second-quarter sales were $147.98 billion, missing analysts’ expectations of $148.56 billion.
Analysts expect Amazon’s online advertising sales to reach $13 billion. The company’s online advertising unit is still small relative to its core online retail business, but it is growing rapidly and transforming the digital advertising industry, in which Meta and Alphabet still dominate.
In fact, Meta’s online ad sales continue to improve after a rough 2022, when Apple rolled out iOS privacy updates in 2021 that weakened the company’s ad targeting system, as well as smaller ones like Snap and Pinterest. Social Media Competitors.
On Wednesday, however, Meta reported second-quarter earnings that topped expectations and signaled that the company has revived its ad technology. In fact, Meta said overall sales in the second quarter, most of which were advertising, rose 22% year over year to $39.07 billion.
Meta’s revenue growth rate is twice that of rival Google’s advertising business. When Alphabet announced its quarterly earnings last week, it said its Google advertising unit’s second-quarter sales grew by $64.6 billion, an 11% year-over-year increase.
Alphabet also said at the time that YouTube ad sales in the second quarter were US$8.66 billion, lower than analysts’ expectations of US$8.93 billion.
At the same time, Microsoft said in its latest quarterly financial report earlier this week that search and news advertising sales increased 19% year-on-year in the second quarter, but the company did not disclose specific quarterly revenue data for this department.
Smaller online advertising businesses, e.g. breakPinterest and Spotify also recently reported revenue growth of 16%, 21% and 20% respectively in their latest reports.
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