Pascal Rossignol | Reuters
by Amazon The ad business continues to grow despite the overall decline of digital advertising, which has hurt companies like Google’s parent company Alphabet, Facebook’s parent company Meta and Snap.
The online retail giant’s advertising services unit brought in $11.6 billion in revenue in the fourth quarter, up 19% year-over-year, according to its report. Thursday earnings report.
While Amazon’s ad unit still accounts for a small portion of the $149.2 billion in revenue the company recorded in the fourth quarter, it represents a fast-growing area that analysts believe. can play an important role in the digital advertising market.
Indeed, while investors are pleased that Meta is cutting costs, the company’s sales Fourth quarter down 4% year-on-year to $32.17 billion.
meta executive explain on Wednesday in a call with analysts that they do not see the digital ad market recovering immediately. Susan Li, chief financial officer, said: “In line with our expectations, Q4 revenue remains under pressure from weak advertising demand, which we believe will continue to be impacted by the backdrop uncertain and volatile macroeconomic landscape.”
Meanwhile, Alphabet on Thursday reported Fourth quarter ad revenue was $59.04 billion, down from $61.24 billion in the previous quarter.
Alphabet’s YouTube ad unit, facing competition from TikTok, brought in $7.96 billion for the year Fourth quarterdown 8% from a year ago.
Tech companies backed by digital advertising have come under pressure from a number of factors, including a tough economy, increased competition from TikTok and the lingering impact of AppleiOS 2021’s privacy update.
Insider Intelligence’s latest survey of worldwide digital ad revenue share reveals that Amazon now holds 7.3% of the overall online ad market, followed by AlphabetGoogle, Facebook and Instagram are owned by Meta, which accounts for 28.8%, 11.4% and 9.1% of the digital advertising market, respectively.
