on’s revenue from ad-services rose by 22% in Q2 to more than $10 billion //

Amazon generated $10.68 Billion from its advertising services in the 2nd quarter of 2023.

This figure represents a 22% rise from the same period of 2022. The digital advertising market is beginning to recover from the downturn.

Why do we care? After a decline in digital advertising revenues during the recession, Google Meta, and Microsoft all reported an improvement in advertising revenues. Amazon has achieved the highest percentage year-over-year growth. Amazon’s strong performance is a sign that the digital advertising industry is on a rebound, which should reassure marketers who are hesitant. Restaurating faith in the industry should lead to an increase in ad spending in Q3.

Amazon is leading the AI revolution. The company’s strong performance can be attributed in part to the use of advanced machine-learning models. The company said that its new technology helped advertisers reach their targeted audiences at optimal cost efficiency as the industry moved away from third-party cookie. Amazon said that marketers have benefited from an increase in click-through rate and ROAS along with a decrease in cost per impression.

What did Amazon say? Andy Jassy is the CEO of Amazon. He described Q2 as “another quarter of strong progress”. He said:

• “We continue to lower our cost of serving in our fulfillment networks, while providing Prime customers the fastest delivery speed we’ve ever achieved.”
• The AWS growth stabilised as customers shifted from cost optimization to new workloads. AWS also continued to strengthen its leadership position with a series of generative AI releases, which make it easier and cheaper for companies to run and train models (Trainium chips and Inferentia), customize Large Language Models in order to build generative AI agents and applications (Bedrock), or write code more efficiently using CodeWhisperer.
• Advertisers can now customize their spots based on audience, and have interactive experiences with consumers.
• We are excited to see what the future holds for our customers and ourselves.

Earnings Report. For more information, you can read Amazon’s results for the second quarter of 2023.

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