Amazon Q3 ad revenues surpass $1 billion, up roughly 2X from early 2016

Yesterday Amazon announced third-quarter earnings. The company reported sales growth of 34 percent to $43.7 billion. A year ago Amazon reported $32.7 billion in sales.

For purposes of this post, the notworthy part is Amazon’s “other” revenue, which is basically advertising. Buried at the bottom of the Net Sales chart in the press release was this line item:

Other is defined by Amazon to include “sales not otherwise included above, such as certain advertising services and our co-branded credit card agreements.” It’s a safe bet then that ad sales for the quarter were $1+ billion, which represented 58 percent year over year growth. Since Q2 of 2016 ad sales have basically doubled.

On the earnings call, Amazon CFO Brian Olsavsky said “Advertising revenue continues to grow very quickly and its year-over-year growth rate is actually faster than the other revenue line item that you see there [in the ‘other’ category].”

The fact that Amazon is now on par with or surpasses Google in product search is not lost on retailers and brand advertisers. Reflective of the company’s intensifying effort to attract ad revenues from search marketers and agencies, Amazon made its first appearance at SMX East in New York City this week to promote Amazon Marketing Services advertising offerings.

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