Here's the latest on Amazon's $31 billion ad business, which continues to grow despite the economic upheaval
Amazon has become the third-biggest digital advertising company behind Google and Facebook, hitting $31 billion in ad revenue in 2021. In the third quarter of 2022, ad revenue grew 25% year-over-year, an exception to the slowdown most of the ad industry faced during the economic volatility.
Under CEO Andy Jassy, Amazon is shaking up its ad business to attract TV ad dollars, especially from advertisers that don't sell their products on its platform. It's also seeking out new frontiers for ads — including placements in its physical Whole Foods stores. Its growth has led Walmart, Instacart, Walgreens and other retailers to build their own retail media platforms.
Here's the latest on Amazon's moves to expand its advertising business and the growing competition.
Amazon's ad business is big and growing
Advertising is a tiny sliver of Amazon's business, but it's one of the company's fastest-growing areas. The tech giant continues to cut into advertisers' search budgets that mostly go to Google. It's also ramping up its audio and video sales pitch.
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Who runs Amazon's ad business
Amazon has built a team of execs to pitch advertisers, including people like Alan Moss and Colleen Aubrey; and agency and brand vets who work directly with marketers.
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Amazon's competition for ad dollars
Other big retailers and delivery companies including Walmart, Albertsons, and Instacart are scrambling to build their own ad businesses.
How advertisers navigate Amazon
Marketers have complained that Amazon is tough to navigate, and its structure has spawned a cottage industry of specialty firms. Amazon has rolled out buying tools, boosted its presence at industry events, and hired big agency talent to cozy up to advertisers.
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Amazon is hiring ad talent
Amazon is staffing up in advertising, but its tough interviewing process and distinct culture can make it hard for outsiders to break into the company.
We talked to insiders about how to ace the interview process.
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