Amazon's Ad Revenue Is Now Twice As Big As Snap, Twitter, Roku and Pinterest Combined

The major growth in Amazon's advertising unit means its revenue contribution is now 2.4 times larger than Snap, Twitter, Roku and Pinterest combined, and it's growing 1.7 times as quickly, according to Loop Capital. CNBC reports: Amazon's "Other" unit, which is primarily made up of advertising but also includes sales related to other service offerings, grew revenue a whopping 77% year-over-year to more than $6.9 billion in the first quarter, the company reported last month. "Performance ads on the ecommerce sites fueled by Amazon's high-intent traffic and unparalleled user insights are providing significant value for sellers and brands," Loop Capital analysts wrote in the Monday note.

They also cited the company's presentation at the recent IAB NewFronts that discussed the company's efforts in the streaming space. Amazon said early this month its ad-supported streaming video content now reaches more than 120 monthly users every month, driven by platforms like Twitch. Amazon generated $22.4 billion in ad revenue in the past 12 months, up 65% year-over-year, according to Loop. That was 2.4 times the $9.3 combined revenue total of middle-cap ad platforms Snap, Twitter, Roku and Pinterest, which grew by 38% over that same timeframe.

Pinterest?

[Patent Lover]

Was there really a need to include the $14 Pinterest made on advertising last year?

Re: Pinterest?

[saloomy]

Yes. Because it distracts from the fact that this advertising degrades the quality of results on the Amazon store. Search for something with a spec and its the surest way to move to the second page.

Re:

[Fly Swatter]

A yes, the site that randomly appears and fills search results with nothing of value. I have that site adblocked entirely.

Re:

[fantas]

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Re:

[dbrueck]

I think my neighbor just signed up, so it's likely 121 by now.

Metrics

[GrahamJ]

Kind of a strange metric. How many sportball fields is that?

Re:

[OrangeTide]

Amazon's quarter is equivalent to the GDP of two Montenegros (over the same period)

That's all?

[cascadingstylesheet]

I would have thought more.

Trying to outspend China

[kingbilly]

My company ramped up our advertising on the Amazon marketplace last year. Why? Because someone in China will offer a knock-off and join our listing, and even though we ship same day and delivery will occur in 3-5 days, Amazon will give the buybox to the seller in China. Not only will the loss of the buybox essentially mean no sales, but you will eventually have someone leave a negative product review (instead of seller feedback) because it took 3-4 weeks for their package to arrive from China.

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