Everything to know about Amazon’s advertising business, which is $21 billion and growing

amazon advertising executive 2x1

Marketers cut ad spending in the pandemic, but e-commerce advertising has boomed as people shop more from home – with Amazon leading the pack.

EMarketer said Amazon claimed 10.3% of the US digital ad market in 2020, up from 7.8% in 2019 – competing with Google and Facebook for ad budgets. That growth has attracted Walmart, Instacart, Walgreens and other retailers that have joined Amazon in vying for a slice of the pie.

Here’s the latest on what we know about Amazon’s moves to grow its advertising business.

How big is advertising for Amazon?

Amazon made about $21.5 billion from advertising in 2020, up from roughly $9.3 billion in the year-ago period.

While that amount is a tiny sliver of Amazon’s revenue from retail sales and Amazon Web Services, its cloud business, advertising is one of its fastest-growing areas. The tech giant continues to cut into advertisers’ search budgets that mostly go to Google.

The pandemic’s impact on Amazon

While advertisers have slashed TV and some digital budgets during the pandemic, Amazon’s advertising has grown as people do more of their shopping online. Amazon has also increased the advertising potential of Twitch, its live-streaming service whose viewership has grown during the pandemic.

Ad tech’s role in Amazon’s ad business

Advertisers and sellers often cite a lack of data and tools as challenges in advertising on Amazon, which has given rise to a cottage industry of firms that specialize in helping marketers navigate the site. Meanwhile, Amazon has pushed further into programmatic advertising with its OTT arm that sells ads in some Fire TV apps.

Ad measurement

Amazon has loads of data about how people shop and has offered advertisers more data to help buy and target ads. Still, advertisers say that Amazon’s data can be limited and continue to find new ways to measure ads.

Who runs Amazon’s ad business?

Amazon is notoriously secretive as a workplace. As Amazon’s advertising ambitions have grown, it’s cultivated a team of execs who pitch advertisers on its ad business.

They include several longtime Amazon employees, including Colleen Aubrey, who is part of Amazon’s executive suite. Amazon has also hired big names from ad agencies and brands over the past few years to build teams that work directly with advertisers.

How to get a job at Amazon

Amazon is consistently looking for advertising talent, but its heavy focus on culture makes it hard for outsiders to break into the company.

We talked to insiders about how to ace the interview process.

Read the original article on Business Insider

The ultimate guide to Amazon’s advertising business, which is $21 billion and growing

amazon advertising executive 2x1

Amazon’s e-commerce dominance is quickly expanding to advertising.

The pandemic has drastically cut ad budgets as marketers reign back their spending, but e-commerce advertising is booming as people shop more from home – with Amazon leading the pack.

EMarketer said Amazon claimed 10.3% of the US digital ad market in 2020, up from 7.8% in 2019 – competing with Google and Facebook for ad budgets. That growth has attracted Walmart, Instacart, Walgreens and other retailers that have joined Amazon in vying for a slice of the pie.

Here’s the latest on what we know about Amazon’s moves to grow its advertising business.

How big is advertising for Amazon?

Amazon made about $21.5 billion from advertising in 2020, up from roughly $9.3 billion in the year-ago period.

While that amount is a tiny sliver of Amazon’s revenue from retail sales and Amazon Web Services, its cloud business, advertising is one of its fastest-growing areas. The tech giant continues to cut into advertisers’ search budgets that mostly go to Google.

The pandemic’s impact on Amazon

While advertisers have slashed TV and some digital budgets during the pandemic, Amazon’s advertising has grown as people do more of their shopping online. Amazon has also increased the advertising potential of Twitch, its live-streaming service whose viewership has grown during the pandemic.

Ad tech’s role in Amazon’s ad business

Advertisers and sellers often cite a lack of data and tools as challenges in advertising on Amazon, which has given rise to a cottage industry of firms that specialize in helping marketers navigate the site. Meanwhile, Amazon has pushed further into programmatic advertising with its OTT arm that sells ads in some Fire TV apps.

Ad measurement

Amazon has loads of data about how people shop and has offered advertisers more data to help buy and target ads. Still, advertisers say that Amazon’s data can be limited and continue to find new ways to measure ads.

Who runs Amazon’s ad business?

Amazon is notoriously secretive as a workplace. As Amazon’s advertising ambitions have grown, it’s cultivated a team of execs who pitch advertisers on its ad business.

They include several longtime Amazon employees, including Colleen Aubrey, who is part of Amazon’s executive suite. Amazon has also hired big names from ad agencies and brands over the past few years to build teams that work directly with advertisers.

How to get a job at Amazon

Amazon is consistently looking for advertising talent, but its heavy focus on culture makes it hard for outsiders to break into the company.

We talked to insiders about how to ace the interview process.

Read the original article on Business Insider

The ultimate guide to Amazon’s advertising business, which is $13 billion and growing

amazon advertising executive 2x1

Amazon’s e-commerce dominance is quickly expanding to advertising.

The pandemic has drastically cut ad budgets as marketers reign back their spending, but e-commerce advertising is booming as people shop more from home – with Amazon leading the pack.

EMarketer forecast that e-commerce advertising would rise 39% to $17.4 billion in the US in 2020, to represent 12% of digital ad spend. That growth has attracted Walmart, CVS, and Walgreens and other retailers that have joined Amazon in vying for a slice of the pie.

Here’s the latest on what we know about Amazon’s moves to grow its advertising business.

How big is advertising for Amazon?

Amazon made about $13.5 billion from advertising in the first three quarters of 2020, up from roughly $9.3 billion in the year-ago period.

While that amount is a tiny sliver of Amazon’s revenue from retail sales and Amazon Web Services, its cloud business, advertising is one of its fastest-growing areas. The tech giant continues to cut into advertisers’ search budgets that mostly go to Google.

The pandemic’s impact on Amazon

While advertisers have slashed TV and some digital budgets during the pandemic, Amazon’s advertising has grown as people do more of their shopping online. Amazon has also increased the advertising potential of Twitch, its live-streaming service whose viewership has grown during the pandemic.

Ad tech’s role in Amazon’s ad business

Advertisers and sellers often cite a lack of data and tools as challenges in advertising on Amazon, which has given rise to a cottage industry of firms that specialize in helping marketers navigate the site. Meanwhile, Amazon has pushed further into programmatic advertising with its OTT arm that sells ads in some Fire TV apps.

Ad measurement

Amazon has loads of data about how people shop and has offered advertisers more data to help buy and target ads. Still, advertisers say that Amazon’s data can be limited and continue to find new ways to measure ads.

Who runs Amazon’s ad business?

Amazon is notoriously secretive as a workplace. As Amazon’s advertising ambitions have grown, it’s cultivated a team of execs who pitch advertisers on its ad business.

They include several longtime Amazon employees, including Colleen Aubrey, who is part of Amazon’s executive suite. Amazon has also hired big names from ad agencies and brands over the past few years to build teams that work directly with advertisers.

How to get a job at Amazon

Amazon is consistently looking for advertising talent, but its heavy focus on culture makes it hard for outsiders to break into the company.

We talked to insiders about how to ace the interview process.

Read the original article on Business Insider

Retail advertising’s growing pains

Hi and welcome to this weekly edition of Insider Advertising, where we track the big stories in media and advertising.

Remember you can sign up to get this newsletter daily here

This week: 


CVS pharmacy

Retail advertising’s slog

It seems like every day there’s another retailer that’s trying to turn its site into an advertising platform.

Ulta Beauty, CVS and Walgreens, to name a few, have accelerated their ad businesses to capitalize on online shopping growth in the pandemic and offset shrinking retail margins.

This is welcome news to advertisers, which are eager for advertising alternatives to Amazon.

But as ad execs told Lauren Johnson, these retailers have their work cut out for them.

As they see it, retailers face stiff competition for big brands’ advertising, don’t share enough shopper data, and are inefficient to buy.

“There is a big opportunity, but most these platforms are still pretty nascent in media capability,” Jessica Richards, EVP of Havas Media Group, told Lauren. “Our prediction is this will be a big growth area in 2021 and the sophistication of targeting, sales tracking and more access to inventory via expanded sources will come soon.”

Read more: Big retailers like Walmart and CVS are trying to cash in on the soaring e-commerce ad business, but many advertisers aren’t sold


Sundar Pichai
Google CEO Sundar Pichai. Google backed out Project Maven, a controversial AI project with the Pentagon, but has continued working with the agency.

Google’s ‘sweetheart deals’

Revenue-share agreements and other incentive programs have long been a contentious issue in the advertising sector. High-profile marketers have called for their agencies to provide more transparency in their contracts in recent years.

Now some rev-share agreements that Google has with a select number of adtech companies are getting new attention as smaller adtech firms struggle in the down economy and as Google faces accusations of anticompetitive behavior.

One such smaller adtech operator, Liam Patterson of Bidnamic, called these little-known RSA agreements “a kick in the teeth” for smaller adtech companies struggling to survive.

Martin Coulter and Lara O’Reilly revealed details of some of these deals, which include Google paying Marin Software more than $12 million in 2019.

Read more: Google has signed a number of little-known revenue share agreements with ad companies – but some smaller firms describe them as unfair ‘sweetheart deals’ 


Nighttime view of the New York Times Building
Nighttime view of the New York Times Building

Times a-changing

ICYMI, Steven Perlberg had a great profile on Carolyn Ryan at The New York Times, who’s seen as a contender to be its next top editor.

Ryan checks a lot of the traditional journalistic boxes one might expect of the executive editor at the Times – but also stands out as the executive supervising its most fraught topic: newsroom culture.

Her rise also reflects how newsrooms’ priorities have changed. Earlier in the shift from print to digital, a lot of their focus was on expanding their subscriptions, product expertise and storytelling abilities.

Now, with a broader social reckoning going on, diversifying their staffs and coverage has taken center stage. At the Times, that’s also meant dealing with tension and controversy that’s erupted in part as a result of expectations by its newer, more diverse staff about how much they should change the newsroom, and vice versa.

“After Dean, Carolyn has the hardest management job in the newsroom right now. Her portfolio is at the center of all the questions that are roiling the newsroom,” Nicholas Confessore, a Times reporter who has worked under Ryan, told Perlberg.

Read the full story: Carolyn Ryan is the most powerful woman in The New York Times newsroom – and she could become its next top editor 


More stories we’re reading:

That’s it for me this week. Thanks for reading, and see you next week!

– Lucia

Read the original article on Business Insider