3 Reasons Behind Amazon's Advertising Strength: Are They Sustainable?

Nov. 10, 2022 6:42 PM ETAmazon.com, Inc. (AMZN)GOOG, GOOGL, META, SNAP5 Comments
Nexus Research profile picture
Nexus Research
1.11K Followers

Summary

  • Amazon’s Sponsored Product ads are cheaper than most other platforms, including Google, Facebook and Instagram.
  • Apple’s privacy policy changes and SKAN solution undermine competitors’ ability to offer meaningful attribution measurement, augmenting the value proposition of Amazon’s advertising solutions.
  • Most people still primarily search for products on Amazon, though social media platforms are making progress in shifting search behavior towards their own platforms.

Amazon

hapabapa

Amazon.com, Inc.’s (NASDAQ:AMZN) advertising revenue grew 30% year-over-year (excluding foreign exchange impacts) in Q3 2022, far outpacing its advertising rivals. The e-commerce giant has been successfully penetrating the advertising market, growing its market share from 7.8% to 11.6% between 2019 and 2021, and

This article was written by

Nexus Research profile picture
1.11K Followers
Striving to uncover long-term investment opportunities (10+ years) through in-depth research and analysis. Nexus Research seeks to evaluate and compare business strategies to determine a company’s potential for market penetration, revenue growth and profit margin expansion. During market downturns, stocks often become cheap very fast, creating various investment opportunities at once. Amid such circumstances, investors often lack the time to research a company thoroughly before making investment decisions, out of fear that they will miss out on attractive entry points. Therefore, Nexus Research not only uncovers present-day buying opportunities, but also offers extensive insights on solid companies with promising growth potential despite expensive valuations, thereby allowing investors to be ready and make well-informed investment decisions when the stock becomes more reasonably valued.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (5)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.