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Amazon’s online advertising business saw a 20% year-over-year increase in revenue during the second quarter, bringing in $12.77 billion. However, this figure fell short of analysts’ expectations, who had anticipated $13 billion in sales for the quarter.
The results were released on Thursday as part of Amazon’s overall second-quarter earnings report. The company’s total sales for the quarter amounted to $147.98 billion, slightly below the forecasted $148.56 billion.
Despite missing estimates, Amazon’s advertising segment continues to grow rapidly, reshaping the digital advertising landscape traditionally dominated by Meta and Alphabet. This expansion highlights the increasing diversification of Amazon’s revenue streams beyond its core online retail business.
The broader advertising industry has shown varied performance across major players. Meta reported strong results, with second-quarter overall sales, primarily from advertising, rising 22% year over year to $39.07 billion. This marks a significant recovery for Meta, which had struggled following Apple’s iOS privacy update in 2021 that impacted ad targeting capabilities.
In contrast, Alphabet’s Google ad business recorded an 11% growth in second-quarter sales, reaching $64.6 billion. While this growth was steady, it was lower than Meta’s, and YouTube’s advertising sales fell short of expectations, totaling $8.66 billion compared to the anticipated $8.93 billion.
Microsoft also reported a 19% increase in its search and news advertising sales for the second quarter, although the company did not disclose specific revenue figures for this segment.
Meanwhile, other companies in the online advertising space, such as Snap, Pinterest, and Spotify, reported revenue growth of 16%, 21%, and 20%, respectively, in their latest earnings releases.
Amazon’s continued growth in the advertising sector underscores the dynamic nature of the digital advertising market, where new players are increasingly competing with established giants. As Amazon strengthens its advertising capabilities, it remains a key player to watch in this evolving industry.