Amazon’s Promising Business Advertising Sales Losing Steam

There are only a handful of companies in the world that are as huge as Amazon. One of the main reasons for its continued growth is its ability to do business at all times. Of late, its advertising sales business under the ‘others’ section has been reaping a lot of profit. However, for the first time in a couple of years, a slowing in growth has been noticed for the company as it ended at 36% lesser than what is made in the same time period the previous year.

The total growth stands at $2.72 billion which is a substantial amount but is a massive depreciation from the 97% growth it had in the last quarter and 100% in the three quarters prior to that. There seems to be an analogy though. The growth has been exaggerated for the year 2018 because there was a change in accounting in the month of January for the year. The actual growth was 38% in the last quarter and ranged between 51% and 73% for the previous ones. Thus, the reduction in growth is true but the amount of drop is not that massive.

This comes as bad news for Amazon though as their advertising sales have been one of their most profitable sections recently, giving it a bright spot in their business. According to statistics, Amazon currently stands at the third position, as far as digital marketing is concerned and is only behind Facebook and Google now. According to the reports given by the CNBC, more than half the traffic of consumer goods advertisements are shifting their base from Google to Amazon as there is a scope of direct conversion from ad to sales. Amazon is expected to occupy 8.8% of the market, though Google sits comfortably on top at 37.2% and Facebook at the second position at 22%. A spokesperson from Amazon recently said that they are working on creating a network of relevant and useful ads on Amazon and hopes to become the number one soon.

Leave a comment

Your email address will not be published. Required fields are marked *