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Amazon Ads Revenue Soars to New Heights

Published on: May 13 2023 by pipiads

Amazon's ad-supported streaming video content has now reached over 120 million monthly users, up from 20 million in January 2020, driven in part by the streaming video game platform, Twitch, which Amazon owns. In Amazon's earnings report last week, the company reported a 77% revenue growth to nearly $7 billion in its other unit, which is largely ads. Amazon is well positioned to keep growing its ad business further, especially with Apple's operating system change prompting people to opt out of ad targeting. Walmart, Target, and other retailers are also investing in their own ad businesses to build their own strength in shopping data. Walmart, which launched a self-service ad platform in January 2020, is projected to generate over $1.5 billion in e-commerce channel ad revenue this year. Walmart has over 1% of all US search ad revenue, compared to Amazon's 19% share and Google's 57% share. Google and Facebook are also investing in their own marketplaces to learn more about what people want to buy.

Twitter's recent acquisition of Scroll shows their diversification away from reliance on advertising and towards subscription-based services. They already have a subscription service for newsletters and are working on a Super Follow feature to let people pay to access exclusive tweets. The companies with scale, like Amazon and Facebook, have the biggest advantage in the ad business, and Twitter may have a hard time hitting its growth targets when competing against these behemoths.

Amazon's Ads Business

Amazon is the most valuable e-commerce company with a valuation of $1.7 trillion and a revenue of over $300 billion in the last 12 months. The company's revenue is mainly generated from online stores and third-party sellers that use Amazon's platform for selling products. In addition, Amazon Web Services, subscription-based services like Prime Video and Music, and physical stores, including Whole Foods Market, also contribute to the company's revenue.

The Rise of Amazon's Advertisement Business:

Amazon's advertisement business generated $9.8 billion in 2018, which is 2.4 times that of Snap, Twitter, Roku, and Pinterest combined. Over the last 12 months, Amazon's advertisement business generated $22.4 billion, with a year-over-year growth of over 80 percent. The company's advertisement business is forecasted to quadruple by 2023. Currently, most of the ad revenue is generated from Amazon.com, which contains non-video ads. However, video ads are featured on platforms like Fire TV, Prime Video, and Amazon-acquired IMDb TV and Twitch.

Sponsored Search Results:

Sponsored search results are the hearts and minds of Amazon's advertisement business. Approximately 74 percent of US consumers begin their search for products from Amazon.com, and more than half would choose to buy from Amazon if it was the only retail shop. Amazon's advertisements are more focused on the product than ads on a search engine model like Google.

The Success of Amazon's Advertisements:

The success of an ad depends on its nature and the platform it's being shown on. Twitter struggles with ads as most people open Twitter to know the latest news or see the latest bizarre thing that Donald Trump said. Facebook suffers from a similar problem, but its intense knowledge of user behavior allows it to target ads so effectively that it makes a massive amount of money. Amazon saw an increase in the retail and advertisement business during the COVID-19 pandemic.

Amazon's advertisement business is growing rapidly, and the company is expected to quadruple its ad revenue by 2023. Sponsored search results and product-focused ads are the key to the success of Amazon's advertisements. The company's video-based advertisements on non-retail platforms like Fire TV and Twitch are becoming increasingly popular. Amazon's data sets are valuable, and the company's wide ecosystem of applications allows it to track user behavior easily, leading to better ads and higher conversion rates.

How Did Amazon's AD REVENUE surpassed YouTube | business Case Study

When we hear the word Amazon, the e-commerce website comes to mind first, followed by the dense forest. With Amazon being the go-to platform for product searches, it is considered the king of e-commerce. However, there is one revenue source that has been hidden for years, and it is surprisingly the third-largest revenue source for Amazon in 2021 - advertising.

Ways Amazon earns through advertising:

- Playing ads in video format

- Displaying banners on their website

- Pushing products to the top of the page through sponsored tags

- Displaying related products with sponsor tags

Benefits of advertising on Amazon:

- Helps sellers get better sales and profit

- A key for ad agencies and brands to promote products and grab attention

- Amazon is generating more ad revenue than Microsoft, Snapchat, and Pinterest

Amazon's ad revenue in 2021:

- Ad revenue of $31 billion for FY 2021

- Amazon is one step ahead of social media companies in terms of ad revenue

Future plans for Amazon:

- It will be interesting to see how Amazon scales up its ad revenue compared to ad-based companies like Google and Meta.

Amazon's advertising revenue may have been hidden for many years, but it has now been revealed to be a major source of income for the company. As Amazon scales up its ad revenue, it will be interesting to see how it competes with ad-based companies and how it helps brands to scale up even more.

How Amazon Makes Money

Amazon's 2018 Profitability: How AWS and Other Segments are Driving Growth

Amazon reported record profits in 2018, earning $10.1 billion in net income, compared to just $3 billion in 2017. This represents major growth for a company that had little annual profit until 2016. One of the reasons for this growth is that Amazon has shifted focus to other segments like AWS, advertising, and the third-party marketplace.

Key Points:

- AWS is Amazon's cloud computing division, generating the majority of the company's operating income since 2016.

- AWS brought in $7.3 billion in operating income and $25.7 billion in revenue in 2018, making it a highly profitable business.

- The fastest growing division of Amazon is its advertising business, which brought in $10.1 billion in revenue in 2018.

- The third-party marketplace is also experiencing major growth, with sales rising 34% in 2018 to $42.7 billion.

- Amazon's smart speakers, particularly Alexa, have analysts excited about the company's move into the pantry and refrigerator markets.

Amazon's profitability in 2018 is largely due to its shift in focus to other segments like AWS, advertising, and the third-party marketplace. While its e-commerce division is still dominant, it is not as profitable as these other segments. As the company continues to grow, investors are questioning how to value Amazon in light of its slowing growth but high profitability.

How to Assess True Amazon Revenue with Profits

In this article, we will be discussing a new tool called Profits by Helium 10, which is designed to help Amazon sellers understand their actual profits.

Bullet points:

- Profits is a brand new tool by Helium 10

- It automatically grabs data from Amazon to show actual profits

- You enter product cost and freight cost

- It shows all analytics and profits, including fees and promotions

- It's in beta and will be updated regularly

- It's included free with Helium 10 paid membership

Explanation:

Have you ever sold a lot of products on Amazon but had no idea what your actual profit margins were? This is a common problem for many sellers, but it's a thing of the past now. Helium 10 has launched a new tool called Profits that automatically grabs all of your data from Amazon to show you exactly how much you're actually profiting. All you have to do is enter your product cost and freight cost, and it does the rest.

With Profits, you can see all the analytics and profits, including fees and promotions. It's super simple to use, and it's included free with your Helium 10 paid membership. Even if you're a free user, you can still access Profits for free for the time being, while it's in beta.

If you're an Amazon seller, you need to check out Profits by Helium 10. It's a game-changer for understanding your actual profits and improving your business. It's easy to use, and it's included free with your Helium 10 membership. So what are you waiting for? Go activate your Profits tool now and start profiting!

CHRISTMAS DAY🎄 So GLAD We Are NOT in Siargao Right Now 😨

Good morning everyone and Merry Christmas! We're here at the Sofitel hotel with our family and our furry friend Poppy. We've been opening presents slowly and enjoying some delicious room service. Today, we're going to recap our Christmas day and share some highlights.

Christmas Morning:

- Opening presents with Poppy

- Breakfast at capacity, had to order room service

- Trying out the different jams

- Story's new princess toy

- Setting up the Christmas tree

Making the Ball Game:

- Wrapping presents in cling wrap

- Adding gloves for an extra challenge

- Trading gifts

Lazy Afternoon:

- Watching Pinocchio on Netflix

- Enjoying Christmas donuts from the Green Bar in Makati

- Taking a nap

Manila Bay Update:

- Land reclamation project ongoing

We had a great Christmas with our family and Poppy. We're excited to continue our adventure and explore more of the Philippines. Stay tuned for more daily videos and updates!

Simplify Amazon Advertising For Profit - Not Revenue

In this Women on Amazon podcast episode, Laura McCall from Sponsored Profit discusses PPC strategies for Amazon sellers. Here are some key takeaways:

- Laura McCall is a part of Sponsored Profit and focuses on Amazon PPC.

- They recommend starting small and keeping things simple in terms of PPC campaigns.

- PPC is a long-term growth strategy for Amazon businesses.

Initial Strategy:

- Start with 5-10 short-tail, high-traffic, relevant keywords (C keywords).

- Use both auto and manual campaigns with different match types to generate data.

- Look at the search term report to identify longer tail keywords with good click-through and conversion rates.

- Don't spend too much too quickly, as it's easy to waste money this way.

Long-Term Strategy:

- Keep testing and discovering new keywords to sell products on.

- Have a systematic approach to testing keywords in campaigns.

- Use a break-even strategy to ensure campaigns aren't losing money, which helps drive organic rank and sales.

Campaign Structure:

- The core structure includes an auto campaign and broad, phrase, and exact match campaigns.

- There are also four types of auto campaigns to leverage.

- Add successful keywords to existing campaigns or create new ones if needed.

- PPC takes time and a measured approach to see results.

- Don't focus solely on main keywords and instead test and discover new ones

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