What's Behind Amazon's Accelerating Ad Revenue
Amazon's (NASDAQ: AMZN) advertising business has quickly grown to become a part of the digital advertising triumvirate that dominates in the United States, alongside Facebook (NASDAQ: FB) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google. But while its fellow tech giants saw stable ad revenue growth last quarter, Amazon's "other" revenue segment, which consists primarily of advertising, accelerated 8 percentage points on a constant currency basis.
That acceleration brought Amazon's other segment growth to 45% for the quarter, and CFO Brian Olsavsky said "advertising grew at a rate higher than that 45%" during the company's third-quarter earnings call. The company is already at a $14 billion run rate for the segment, but the accelerating growth suggests there's still a lot of room left to improve that number.
Here's what's behind Amazon's accelerating ad revenue.
Source Fool.com
