Amazon’s Seattle headquarters.
(GeekWire Photo) Amazon’s cloud company may get a lot of the attention for strengthening the provider’s bottom line. But an emerging new advertising arm of Amazon can be fueling record gains for its Seattle technology giant. Amazon on Thursday posted earnings of $52.9 billion and earnings of about $ 2.5 billion for its second quarter. The company has traditionally funneled its earnings back in the company, leading to quarterly net declines but allowing Amazon to invest in growth. The benefit of Amazon Web Services has aided access Amazon into the green Recently, but its lesser-known promotion business is also playing a role. “It’s currently a multibillion-dollar company for us. We’re seeing strong adoption over numerous fronts.” Amazon does not break out financials for advertising and lumps it into the”Other” category, which”primarily includes revenue of advertising solutions, in addition to sales related to our other service offerings,” based on financial statements. Amazon reported earnings of $2.2 billion to that category in the next quarter, up 129 percent year-over-year. For contrast, Amazon’s online store sales grew 12 percent and AWS sales grew 49 percent. Brian Olsavsky, Amazon’s chief financial officer, specifically known as the rise of advertising as a catalyst of the provider’s”strong quarter” “It’s currently a multibillion-dollar company to people,” he said on a call with analysts Thursday. “We’re seeing strong adoption across numerous fronts.” Advertising drives a vast majority of earnings for fellow technology giants such as Google and Facebook, which charge advertisers to get their advertising content appear to search results or news feeds. Amazon employs a similar strategy, but rather with its online marketplace, giving vendors, authors, and many others a way to reach potential customers. One of its primary competitive advantages is the data it’s on buying habits. “Connect your new brand to Amazon customers wherever they discuss, browse, listen, purchase, study and download online, across devices,” Amazon’s advertisement site reads. Olsavsky said Amazon is working on enhancing automation programs for advertisers and creating smarter recommendations for customers. It is also concentrated on building out measurement abilities so”advertisers know what results they are driving on our possessions.” “We think we are uniquely positioned to show them of the direct advantage of their advertising,” Olsavsky added. Olsavsky said Amazon’s international advertising company is also growing at the”same fast clip ” There still appears to be room for Amazon to grow its advertising company even more. Amazon has turned into a formidable e-commerce internet search engine, competing with Google are the very first place where shoppers start when they wish to get products online. Its growing advertising business is another illustration of the battle between Amazon and also Alphabet-owned Google, which compete throughout numerous areas like voice engineering, cloud computing, and online shopping. Amazon’s ad company can go further than just e-commerce, extending in to films, TV, gambling, voice goods, and live sports, NBC News reported. Grocery buying data from its purchase of Whole Foods may provide Amazon more insight in to brick-and-mortar advertising plans. Amazon also allows sellers to buy ads for products not available on Amazon.