Amazon recently announced its second quarter results for the year, following the continuous shifts in consumer expectations and demand. In the report, Amazon鈥檚 鈥淥ther鈥� unit, which is primarily made up of advertising, but also includes sales related to other service offerings, grew revenue by 87% year-over-year in the second quarter to more than $7.9 billion. Converging its marketplace and proprietary web services, Amazon has pushed its booming advertising services to the forefront of its business platform.
Amazon Advertising has become increasingly competitive due to the influx of new brands adopting the platform, on top of existing advertisers expanding their usage. This rapidly growing space 鈥� coupled with the strong ROI opportunity 鈥� is pushing businesses to up their Amazon ad spending. According to a Feedvisor study, brands allocated 28% of their 2020 digital media budgets to Amazon, up from 25% in 2019.
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Additionally, Amazon Advertising launched over 40 new features and self-service capabilities, targeted for sellers, companies, and authors to efficiently grow their businesses by helping customers discover their brands and products, specifically through regional targeting. These services, aimed at furthering brand reach throughout Europe, Asia, and the Middle East, hope to create more opportunities for local and global sellers to find and grow their audience.
Dani Nadel, President and COO, Feedvisor, believes as brands invest more in the platform, they must ensure their businesses are employing the right data-driven strategies to capitalise on these benefits and connect with online shoppers. A holistic understanding of advertising performance empowers businesses to understand SKU-level profitability and achieve specific goals across their entire operation. This is the only way for brands and sellers to make business-critical decisions to drive growth and unlock greater potential from their Amazon business.
