Amazon’s online advertising business grew 19% year over year to $14.3 billion in the third quarter. The company announced total sales for the third quarter of $158.9 billion. Amazon’s online advertising business is still only a small part of the company’s overall business, but its growth over the years has made it a major competitor to Alphabet and Meta, which lead the digital advertising market.
Amazon’s online advertising business generated $14.3 billion in revenue in the third quarter, up 19% from a year ago and in line with analysts’ estimates of $14.3 billion.
The Seattle tech giant revealed financial results for its growing advertising division as part of its latest earnings report Thursday. Amazon’s overall revenue for the third quarter was $158.9 billion, beating analysts’ expectations of $157.2 billion.
Amazon’s online advertising business is still only a small part of the company’s overall business, but its growth over the years has made it a major competitor to Alphabet and Meta, which are leaders in the digital advertising market. Alphabet’s Google currently holds 27.7% of the global digital advertising market, followed by Meta with 22.8% and Amazon with 8.8%, according to data provided to CNBC by Emarketer.
Meta’s third quarter ad revenue was $39.9 billion, up 19% year over year. That was slightly higher than the $39.49 billion expected by analysts, according to Street Accounts. Advertising accounted for 98.3% of Meta’s total revenue in the third quarter.
Alphabet had ad revenue of $65.85 billion in the third quarter, the company reported Tuesday. This was a 10% increase from $59.65 billion in the same period last year. In addition, ad sales for the company’s YouTube division increased 12% year over year to $8.92 billion.
Microsoft’s search and news ad revenue rose 18% year over year, according to the company’s latest quarterly earnings report released Wednesday. Microsoft does not disclose specific quarterly sales figures for its advertising division.
Social media companies Snap and Reddit reported their latest financial results on Tuesday. Reddit announced third-quarter revenue of $348.4 million, up 68% year-over-year, while Snap announced third-quarter revenue of $1.37 billion, up 15% year-over-year. .
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