An Amazon contract worker stacks packages on a luggage cart outside an apartment building in New York, USA, on Tuesday, April 16, 2024.
Angus Mordants | Bloomberg | Getty Images
Amazon On Tuesday, it reported 24% growth in its advertising unit, the latest sign that the digital advertising market continues to rebound.
Advertising revenue climbed to $11.8 billion in the first quarter from $9.5 billion a year earlier. Analysts expect Amazon’s advertising business to bring in $11.7 billion in revenue, according to StreetAccount.
Amazon’s total revenue during the reporting period was US$143.3 billion, an increase of 13% over the same period last year. While online retail and cloud computing remain Amazon’s bigger businesses, the company is relying on advertising for more growth and profits as expansion slows in other regions.
Digital ad agencies are starting to grow again after a brutal 2022, when brands slashed spending in response to inflation and rising interest rates. Yuan, break and Google Parent company Alphabet reported first-quarter results last week, with revenue growing better than expected, driven mainly by improvements in its advertising business.
Meta was the first company in the group to disclose results, with first-quarter revenue rising 27% to $36.5 billion, its strongest expansion rate since 2021.
Alphabet followed, reporting first-quarter advertising revenue of $61.66 billion, a 13% year-over-year increase, and YouTube advertising revenue jumped 21% to $8.09 billion. The company grew 15% overall, the last time it has seen growth in 2022, and the stock rose 10% on Friday, its biggest gain since 2015.
Snap shares soared 28% on Friday after the company reported revenue growth of 21% to $1.19 billion, its strongest growth in two years. Sales have either grown by single digits or fallen in each of the company’s past six quarters.
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