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Amazon's advertising sector is growing steadily, but not as fast as in the past.
In the first quarter of 2019, Amazon generated $ 2.7 billion in advertising, a line item called "other". Ad revenue represents 36% growth over the previous year, but is down from the $ 3.4 billion reported by Amazon in the fourth quarter.
Although Amazon's advertising activity is more important from one year to the next for the quarter, its growth rate is in free fall. In the first quarter of 2018, Amazon's advertising activity grew 132% year-over-year to $ 2 billion. And in the fourth quarter, the growth rate was 97% from one year to the next, so the 36% of the first quarter jumped.
Read more: Marketers say that it is difficult to navigate the Amazon advertising industry. This is why society thinks that the "chaotic" structure makes sense.
Amazon wants to take the duopoly
The slowdown comes at a critical time for Amazon, who expects more and more to get more of the advertising money on Facebook and Google.
According to the eMarketer research firm, Amazon's advertising activity in the United States will increase by more than 50% this year.
The company also communicated its arguments to the agencies, including 1,200 advertising positions spread over eight teams. According to the agencies, Amazon has set up specific teams to maintain them and has strengthened its program and video offerings.
Trip Miller, managing partner of Gullane Capital Partners, said that advertising was one of the three most important growth areas for Amazon and that it had a benefit in terms of revenue. "multiple and vertical" opportunities compared to other digital advertising companies.
"In addition to regulation, Amazon is the biggest risk for Alphabet in research," he said. "If you do not do business with Amazon, especially on the advertising side, over the next five years, you lose."
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