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Now, Amazon is letting other sites use its ad technology for their own stores. Amazon in 2022 began breaking out ad revenue in its quarterly earnings reports, showing that the business had become a significant contributor to the company's top and bottom lines. Ad revenue in the latest quarter came in at $14.3 billion, third to Alphabet and Meta in digital advertising. The bulk of Amazon's ad revenue comes from sponsored product advertisements, which are keyword-targeted ads that let brands promote certain items. With Amazon Retail Ad Service, users will be able to customize the design, placement and number of ads shown across their sites, as well as use Amazon's ad measurement and reporting tools.
Persons: Joan Cros, Amazon, It's, Paula Despins Organizations: AMD, Amazon Marketing Services, Mobile, Getty, Retail Ad Service, Amazon, Amazon Retail Ad Service, Trading, Amazon Web Services Locations: BARCELONA, SPAIN, Barcelona, Spain
Amazon's advertising ambitions used to be focused on search ads to promote products available through Amazon's marketplace. But today, Amazon's ad business is the third biggest seller of digital advertising, behind Google and Meta, and that business drove $31 billion in revenue in 2021. Amazon Advertising is further extending its influence beyond its platform and across the entire internet, much like Google's sprawling advertising business. Amazon is using its giant cloud business AWS to make ads more powerful both on and off Amazon sitesAmazon has traditionally separated its advertising business from other business units like AWS, but those lines are gone. Amazon's adtech products that use AWS' technology exemplify how Amazon's ad business is proliferating across the digital advertising industry, and competing much more directly with Google than in the past.
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