The news: Amazon’s advertising revenues rose 32% in Q4 2021 to $9.72 billion, reaching $31.16 billion for the year, per the company’s earnings release. The Q4 growth was actually a slowdown from increases of 52% in Q3 and 88% in Q2, when the retailer hosted Prime Day.
More on this: This was the first time the retail giant broke out its advertising revenues.
Why it matters: Amazon’s first-party data on consumer shopping and purchase habits offer it an advantage over the more general online behavioral data that Facebook and Google provide.
The big takeaway: Amazon’s ad business is poised for growth, since the company’s offerings enable marketers to reach huge groups of in-market shoppers with high purchase intent, making it extremely important for brands to defend their search position, much as they do on Google.
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