Amazon generated $14.65 billion from its advertising services in the final quarter of 2023.
The figure marks a 26.8% increase from the same period in 2022 – a result better than forecasts predicted by Wall Street.
Why we care. Amazon’s outstanding performance helps to cement the digital advertising industry’s recovery from a challenging start to 2023. This positive trend is likely to boost confidence among cautious marketers, renewing their trust in the sector. The expectation of continued strong ad revenue performance this quarter further supports this optimistic outlook.
Looking ahead. Amazon expects net sales to range between $138.0 billion and $143.5 billion in the first quarter of 2024, reflecting a growth of 8% to 13% compared to the first quarter of 2023. This guidance factors in a favorable impact of around 40 basis points from foreign exchange rates.
What has Amazon said? Andy Jassy, Amazon CEO, described Q4 as a “record-breaking holiday season.” He said:
- “The regionalization of our U.S. fulfillment network led to our fastest-ever delivery speeds for Prime members while also lowering our cost to serve.”
- “AWS’s continued long-term focus on customers and feature delivery, coupled with new genAI capabilities like Bedrock, Q, and Trainium have resonated with customers and are starting to be reflected in our overall results.”
- “Our Advertising services continue to improve and drive positive results; our newer businesses are progressing nicely, and along with our more established businesses, collectively making customers’ lives easier and better every day.”
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Earnings report. You can read Amazon’s full fourth quarter 2023 results report for more information
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