For a few quarters there, Amazon was posting triple digit growth rates. Then growth slowed to 97% in the fourth quarter of 2018 and Thursday, the company reported just 36% growth in its advertising business line for the first quarter of 2019.
Amazon reports advertising business under an “Other” category. And while advertising accounts for the majority of that category, Amazon said that the advertising business actually grew “a bit more” than 36% in the first quarter. Another thing to note is an accounting change puts previous quarters in a more favorable light, so the actual separation isn’t as big as it looks. All that said, Amazon is clearly invested in growing its advertising and it still very early days for that piece of the business. Here is what Amazon had to say about it on Thursday’s earning call.
Focus on ad relevancy.