Report: Amazon has Advertising Business of $31-billion a Year

BUSINESS

On Thursday, 4th January 2022, the company ‘Amazon’ has revealed just how large the advertising business of the company has become, and the company has generated 31.2 billion dollars in the revenue in the year 2021, along with the sales increasing by 32 percent of the fourth quarter as per the retailers during the earnings of fourth quarter.

This disclosure has been followed years of the company ‘Amazon’ investing in the advertising and also keeping the details private, and at that scale, it has been bigger than many of the other entities in the online advertising, along with including the cloud rival known as Microsoft, and the CEO has disclosed the 2021 advertising revenue of Microsoft exceeding 10 billion dollars.

According to the earnings statement of Amazon said, the advertising has still been small by the standards of Amazon, that has been representing 7 percent of the total revenue in the fourth quarter of 2021. The advertising has been giving Amazon two times the revenue that are done by the physical stores, and it has been more sizable than the subscription services of the company, that is including prime memberships.

See also  Stock of Netflix Drops As Worries of Subscriber Growth Deepens

Brain Olsavsky, finance chief of Amazon said, he is very excited for continuing the innovation in the areas like the streaming video, sponsored ads, and also measurement, and of course advertising has only been working if they are making it very useful for the customers when they are creating great customer experience, and they are going to be building the better outcomes for the brands.