Amazon's fastest new growing business segment…

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Business, Marketing, Careers

4.6 • 1.4K Ratings

🗓️ 21 November 2023

⏱️ 5 minutes

🔗️ Recording | iTunes | RSS

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Summary

In episode #2613, We discuss Amazon's fastest-growing business segment. We're excited to highlight the impressive growth rate of Amazon's advertising services, as it's outpacing its online stores and third-party sellers. We also explore the various ways Amazon is leveraging advertising, including within their own movies and shows. Our conversation touches on the future of Amazon as an ad platform and the potential impact on sellers. Overall, our discussion emphasizes the significance of Amazon's advertising revenue and its potential for further growth. Don’t forget to help us grow by subscribing and liking on YouTube! Check out more of Eric’s content (Leveling UP YT) and Neil’s videos (Neil Patel YT) TIME-STAMPED SHOW NOTES: (00:00) Today’s topic: Amazon's fastest new growing business segment… (00:09) Neil mentions that Amazon's fastest-growing revenue sector is advertising (00:24) Eric shares the growth rates of different segments: online stores, third-party sellers, and advertising services (01:07) Neil mentions that Amazon's advertising revenue for the quarter is $12.1 billion (01:25) Discussion on how Amazon is becoming an ad platform (02:00) Neil disagrees and says Amazon is a holding company (02:50) Future of Amazon: more ads, more fees; future for sellers: less margin (03:14) Neil explains the advertising opportunities within Amazon's movies and shows (04:19) Neil discusses the popularity of Amazon Prime and its TV version (05:06) That’s it for today! Don’t forget to rate, review, and subscribe! Go to https://www.marketingschool.io to learn more! Links Mentioned in Today’s Episode: CNBC article on Amazon’s advertising revenue Leave Some Feedback: What should we talk about next? Please let us know in the comments below Did you enjoy this episode? If so, please leave a short review. Connect with Us: Single Grain << Eric’s ad agency NP Digital << Neil’s ad agency X @neilpatel X @ericosiu Learn more about your ad choices. Visit megaphone.fm/adchoices See omnystudio.com/listener for privacy information.

Transcript

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0:00.0	All right, so we're going to talk about Amazon's fastest new growing business segment.
0:04.6	So Neil, you can start off first because you watch the NBC.
0:07.9	Amazon's fastest new growing ad segment is advertising revenue.
0:11.9	You said Amazon's ads segment is the newest segment.
0:19.8	Amazon's fastest growing revenue center is advertising.
0:24.0	Yeah, well let's talk about this.
0:25.7	So do you here let me share the numbers real quick on screen so you all can see this.
0:29.4	So now this is broken out right so stores, the growth rate is 6%, okay?
0:36.9	And then third party sellers 18%, and then advertising services 25%.
0:41.4	I believe this is quarter and quarter change Neil if I'm reading this correct
0:46.0	I'm going to see NBC which is where I originally learned about this advertising
0:50.4	12.1 billion dollars versus the street expected $11.6 billion in revenue.
0:57.2	That's for the quarter.
0:58.5	So assuming if they're doing roughly $12 billion a
1:03.8	times up by 4.
1:05.1	They're on track to generate roughly $48 billion
1:07.7	a year in ad revenue.
1:09.7	Which is crazy.
1:10.3	So we want to talk about like what's the so what behind us, right?
1:13.2	I mean, it's crazy because we've done an episode in the past
1:17.1	about how everything eventually becomes an ad platform
1:19.6	if you have distribution.
	...

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