Amazon advertising jumped 132% to $2.2 billion up from $945 million during Q1 2018, the company reported as part of its latest earnings statement. The company beat analyst expectations of $2.1 billion having reported its largest profit for its ad business to date.
According to Amazon’s chief financial officer Brian Olsavsky the increase in profits was led by strong growth among business areas such as retail, eCommerce and cloud computing as well as advertising of course.
“We’ve seen a greater-than-expected efficiency in a lot of our spend in things like warehouses, data centres, marketing,” he said.
Meanwhile, research by eMarketer suggests that Amazon’s net digital advertising revenues will grow 58% this year to $3.3 billion. This would put the company on the worldwide map of the digital ad market with a share of 1.2%.
Importantly, mobile advertising revenues are expected to jump 122% during 2018 to $1.08 billion, giving the company a 0.6% share in the mobile advertising marketing worldwide.
According to Clickz research, the top performing ad types on Amazon were Sponsored Products and Headline Search Ads which jumped 165% and 162% year-on-year.
In addition, a recent survey among 1,409 consumers by Avionos suggests that more consumers are now searching for products directly on Amazon bypassing Google. Indeed, 33% of respondents said they start searching for a product on Amazon compared to 32% on Google. Consumers already intent on making a purchase begin their search more often on Amazon (38%) than on Google (22%).