San Francisco 7 February 2022: For the first time ever Amazon published financial details about its online ad business as a separate revenue line (previously it has included advertising in its ‘other’ revenue category). Amazon said sales from its advertising business grew 32% YoY to US $9.7 billion. Advertising is now a + US $30 billion business for Amazon and the third largest advertising business in the world (only behind Google-parent Alphabet and Facebook-parent Meta). Net sales grew 9% YoY to $137.4 billion (+10% exc FX movements).
Commenting on the earnings announcement, Deren Baker, CEO, Edge by Ascential, said:
“Over the next year, we could see Amazon look to accelerate automation in its supply chain and increase investment in its global transportation network and logistics infrastructure in order to address rising labor costs and worker shortages. Inflation and the rising cost of shipping are issues affecting retailers across the board and will put pressure on retailers and brands to consider how much they bear themselves and how much they can pass on to customers.
“Amazon has evolved into a true platform. More than 50% of its revenue in Q3 came from areas outside of first-party retailing, such as cloud computing and advertising, and while this flipped back in Q4, it's the long-term direction of growth. Edge by Ascential currently anticipates that US $2.4 trillion dollars in sales will move online over the next 5 years.”
“Worldwide economic growth is expected to slow in 2022: We are predicting that worldwide economic growth based on GMV will be 14% in 2022, compared to 37% in 2020, and 16% in 2021.”
Deren was hosted on Cheddar TV talking about Amazon's earnings and his comments were featured in Bloomberg, MarketWatch, Live Mint and other news outlets.
About Edge by Ascential
Edge by Ascential helps global and local brands to win in digital commerce in a new and complex era of omnichannel retail. Our unique combination of industry-leading data, analytics, market research and expert consulting solutions inform the ecommerce-driven go-to-market strategy, optimization and performance measurement of the world’s largest brands. We support our clients to always make the right investment decisions, drive margin growth and achieve the necessary edge to grow. More than 400 global brands depend upon our weekly, daily and real-time data-driven insights. A subsidiary of Ascential plc, the global specialist information company, Edge by Ascential operates in North America, Europe and Asia. For more information, visit www.ascentialedge.com
Ascential delivers specialist information, analytics and eCommerce optimization platforms to the world's leading consumer brands and their ecosystems. Our world-class businesses improve performance and solve problems for our customers by delivering immediately actionable information combined with visionary longer-term thinking across Digital Commerce, Product Design and Marketing. We also serve customers across Retail & Financial Services. With more than 2,000 employees across five continents, we combine local expertise with a global footprint for clients in over 120 countries. Ascential is listed on the London Stock Exchange.
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