For some perspective, just one year ago, Amazon’s “other” segment was the smallest segment of its six revenue lines. Now it’s the fourth largest, having surpassed physical store sales and subscription revenue. Back in 2015, Amazon moved Amazon Web Services out of its “other” category once it reached more than $4 billion in sales. Perhaps a similar advertising-related breakout is in Amazon’s near future.
Despite its growth, Amazon’s advertising business didn’t come up during the investor Q&A portion of the call, compared to last quarter when it was discussed in relative depth. Regardless, Amazon’s ad tech continues to gain traction, having clocked in as the top DSP in an Advertiser Perceptions report this December.
Amazon’s streaming business, which creates supply for its advertising business, is also picking up traction, due to increased viewership during the pandemic. In the US, the San Francisco 49ers vs. Arizona Cardinals game in December attracted 11. 1 million total viewers. Amazon Fire counts 50 million monthly active users globally.