Amazon’s Advertising progress remains strong in the third quarter growing 24% YoY from $38B in 2022 to $47B in 2023, primarily driven by our sponsored ads. Amazon has added Sponsored TV to this offering, a self-service solution for brands to create campaigns that can appear on up to 30+ streaming
TV services, including Amazon Freevee and Twitch, and have no minimum spend. Recently, Amazon has expanded its streaming TV advertising by introducing ads into Prime Video shows and movies, where brands can reach over 200 million monthly viewers in its most popular entertainment offerings.
Despite representing only 8.8% of the global digital advertising market, Amazon’s burgeoning ad business poses a significant threat to industry leaders Alphabet (27.7%) and Meta (22.8%). Meta’s ad revenue climbed 19% year-over-year to $39.9 billion in Q3.
In 2023, Amazon’s total revenue grew 12% year-over-year (“YoY”) from $514B to $575B. By segment, North America revenue increased 12% YoY from $316B to $353B, International revenue grew 11% YoY from $118B to $131B, and AWS revenue increased 13% YoY from $80B to $91B.
Media and Advertising,
Andy Jassy, President and Chief Executive Officer Amazon.com said, “Content will continue to migrate from linear formats to streaming. Globally, hundreds of millions of people who don’t have adequate broadband access will gain that connectivity in the next few years. Last but certainly not least, Generative AI may be the largest technology transformation since the cloud (which itself, is still in the early stages), and perhaps since the Internet. Unlike the mass modernization of on premises infrastructure to the cloud, where there’s work required to migrate, this GenAI revolution will be built from the start on top of the cloud. The amount of societal and business benefit from the solutions that will be possible will astound us all”.
Gen AI
“We invented and delivered a new service (Amazon Bedrock) that lets companies leverage existing FMs to build GenAI applications. And, we launched the
most capable coding assistant around in Amazon Q. Customers are excited about these capabilities, and we’re seeing significant traction in our GenAI offerings,” says Jassy.
Amazon is building a number of GenAI applications across every Amazon consumer business. These range from Rufus (AI-powered shopping assistant), to an even more intelligent Alexa, to advertising capabilities (making it simple with natural language prompts to generate, customize, and edit high-quality images, advertising copy, and videos), to customer and seller service productivity apps, to dozens of others.
“We’re also building several apps in AWS, including arguably the most compelling early GenAI use case—a coding companion. We recently launched
Amazon Q, an expert on AWS that writes, debugs, tests, and implements code, while also doing transformations (like moving from an old version of Java to a new one), and querying customers’ various data repositories (e.g. Intranets, wikis, Salesforce, Amazon S3, ServiceNow, Slack, Atlassian, etc.) to answer
questions, summarize data, carry on coherent conversation, and take action. Q is the most capable work assistant available today and evolving fast,” shares Jassy.
“While we’re building a substantial number of GenAI applications ourselves, the vast majority will ultimately be built by other companies. However, what we’re building in AWS is not just a compelling app or foundation model. These AWS services, at all three layers of the stack, comprise a set of primitives that democratize this next seminal phase of AI, and will empower internal and external builders to transform virtually every customer experience that we know (and invent altogether new ones as well). We’re optimistic that much of this world-changing AI will be built on top of AWS,” he adds.
The Indian connection
In accordance with its bylaws, the Aamzon Board has fixed the number of directors constituting the Board at twelve.
One of them – Indra K. Nooyi helps the Board oversee the risks and management of a large corporation with international operations, including financial planning, capital allocation, marketing, and accounting matters, and assess the Company’s grocery businesses and consumer-focused product development.
Nooyi was the Chief Executive Officer of PepsiCo, from October 2006 to October 2018, where she also served as the Chair of its board of directors from May 2007 to February 2019. She was elected to PepsiCo’s board of directors and became its President and Chief Financial Officer in 2001, and held leadership roles in finance and corporate strategy and development after joining PepsiCo in 1994.
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