Amazon’s advertising business grew 19%, while Google and Meta both deal with slowdowns

Amazon’s promoting business continues to develop regardless of a normal slowdown in digital promoting, which has damage firms like Google mum or dad Alphabet, Facebook mum or dad Meta and Snap.

The on-line retail big’s promoting companies unit introduced in $11.6 billion in gross sales for the fourth quarter, representing a 19% year-over-year improve, in response to its earnings report Thursday.

Although Amazon’s promoting unit nonetheless constitutes a small fraction of the $149.2 billion in income the corporate recorded in its fourth quarter, it represents a fast-growing space that analysts consider could possibly be an important participant within the digital promoting market.

Indeed, whereas traders have been happy that Meta is reducing prices, gross sales within the firm’s fourth quarter dropped 4% yr over yr to $32.17 billion.

Meta executives defined on Wednesday throughout a name with analysts that they do not see a right away rebound within the digital promoting market coming anytime quickly. Susan Li, the chief monetary officer, mentioned, “Consistent with our expectations, Q4 revenue remained under pressure from weak advertising demand, which we believe continues to be impacted by the uncertain and volatile macroeconomic landscape.”

Meanwhile, Alphabet on Thursday reported fourth-quarter promoting revenues of $59.04 billion, a slowdown from $61.24 billion within the year-earlier quarter.

Alphabet’s YouTube promoting unit, which faces competitors from TikTok, introduced in $7.96 billion within the fourth quarter, representing an 8% drop from a yr in the past.

Tech firms which might be powered by digital promoting have been beneath strain from a number of components, together with a tricky financial system, elevated competitors from TikTok, and the lingering results of Apple‘s 2021 iOS privateness replace.

The newest Insider Intelligence survey of digital promoting income share worldwide revealed that Amazon now holds 7.3% of the general on-line advert market, trailing Alphabet‘s Google, and Meta-owned Facebook and Instagram, which respectively have 28.8%, 11.4%, and 9.1%, of the digital advert market.