The online retail giant’s ad business brought in $10.68 billion in sales in the second quarter, which was a 22% jump from the previous year during the same period, the company said while reporting its latest financial results on Thursday. Amazon’s overall sales grew 11% year-over-year to $134.4 billion in the second quarter.
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Analysts polled by StreetAccount projected Amazon’s advertising business to bring in $10.4 billion in sales for the second quarter.
Amazon’s online advertising businesses has developed into a lucrative business for the online retailer, representing about 7.3% of the worldwide digital ad market, according to Insider Intelligence. AlphabetMeta
Over the past year, Amazon’s advertising business has been growing while Meta’s core digital ad business has been shrinking. With Apple’s 2021 iOS privacy update limiting the effectiveness of Meta’s online ad platform, some companies, particularly retailers, shifted their Facebook and Instagram ad budgets to Amazon’s platform under the belief that they could make more sales.
But Meta’s online advertising business could be on the mend with the digital ad market showing signs of a modest recovery.
Meta reported last week that its second-quarter revenue grew 11% year-over-year to $32 billion, marking the second-straight quarter of sales growth after three-straight quarters of declines. The sales growth, driven in part by Meta’s efforts to improve its online advertising platform in the wake of Apple’s iOS update, has lifted the spirts of investors who are more optimistic about the social networking giant’s core business than they have been in nearly a year.
Alphabet shares rose 7% last week after the tech giant said last week that its second-quarter sales grew 7% year-over-year to $74.6 billion. Google’s advertising revenue was up 3.3% year-over-year to $58.14 billion during the second quarter while sales in the company’s YouTube advertising unit grew 4.5% year-over-year to $7.7 billion.
Snap, on the other hand, said last week that its second-quarter revenue dropped 4% year-over-year to $1.11 billion, which is the social messaging company’s second straight period of declining year-over-year revenue.
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