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Amazon's and Facebook's ad revenue have gone up significantly in the past quarter, so this is not a story about the decline of the online ad business. It is abo

Amazon's and Facebook's ad revenue have gone up significantly in the past quarter, so this is not a story about the decline of the online ad business. It is about Google not competing in that business as well as it used to.

eitally 8y ago
Not really. It's about Facebook & Amazon created compelling ad networks for to serve ads on their own platforms.
- stone-monkey 8y ago
  However, there isn't an infinite amount of advertising spend and consumer time on the internet - people who spend those things in Amazon and Facebook's + etc's ecosystems can directly and indirectly chip away at Google's advertising market share.
cobookman 8y ago
Amazon makes ~10B illion/year total in ad rev. Google makes ~130 Billion/year on ads. 15% growth on 130 Billion is 19.5 Billion. Aka Google's yearly growth is larger than all of Amazon's Ad rev.
- ec109685 8y ago
  For now…
- deleted 8y ago
  [deleted]
- dredmorbius 8y ago
  Amazon doesn't have to profit on ads. Amazon can profit on actual product sales. Google lacks that luxury.
  - YeahSureWhyNot 8y ago
    actually, Amazon has not profited from sales of physical products.
    - dredmorbius 8y ago
      Out of choice, seeking growth, which provides value by way of equity. The point being that, at least on its own platforms, Amazon's interest is in sales generation, not ads turnover. Direct comparisons between Amazon and Google ads misses the point.
    - athenot 8y ago
      I still have Prime but more and more I find myself buying from other online sources. Either because the selection is better or the price is better. But that made me realize: Amazon's profit lies with AWS, the infrastructure that was originally for their ecommerce operation. But their ecommerce has forced many other retailers to streamline their operations... I wonder how many ended up using AWS as part of that effort.
  - sheeshkebab 8y ago
    The only thing amazon seems to profit on is AWS
netwanderer3 8y ago
I always shit on Facebook in the past but I have to be honest, their ad campaigns don't require buyers to do keywords research which is often a major pain. In addition, they seem to know a lot more about their end users so it's easier to target the exact customer groups you want. Years of unethical privacy practices have probably given them certain advantages in this area. I was completely horrified when I learned you could upload a CSV list of all your customers email addresses and FB will match and display ads to this exact group. At least on Facebook I feel like I personally have a little more control over how/when/where my ads will appear as opposed to Google's process where much of it is dictated by their algorithms. Not a fan of Facebook still but I can totally see why their ad products are working well for some businesses.

eitally 8y ago

Not really. It's about Facebook & Amazon created compelling ad networks for to serve ads on their own platforms.

stone-monkey 8y ago
However, there isn't an infinite amount of advertising spend and consumer time on the internet - people who spend those things in Amazon and Facebook's + etc's ecosystems can directly and indirectly chip away at Google's advertising market share.

cobookman 8y ago

Amazon makes ~10B illion/year total in ad rev. Google makes ~130 Billion/year on ads. 15% growth on 130 Billion is 19.5 Billion. Aka Google's yearly growth is larger than all of Amazon's Ad rev.

ec109685 8y ago
For now…
deleted 8y ago
[deleted]
dredmorbius 8y ago
Amazon doesn't have to profit on ads. Amazon can profit on actual product sales. Google lacks that luxury.
- YeahSureWhyNot 8y ago
  actually, Amazon has not profited from sales of physical products.
  - dredmorbius 8y ago
    Out of choice, seeking growth, which provides value by way of equity. The point being that, at least on its own platforms, Amazon's interest is in sales generation, not ads turnover. Direct comparisons between Amazon and Google ads misses the point.
  - athenot 8y ago
    I still have Prime but more and more I find myself buying from other online sources. Either because the selection is better or the price is better. But that made me realize: Amazon's profit lies with AWS, the infrastructure that was originally for their ecommerce operation. But their ecommerce has forced many other retailers to streamline their operations... I wonder how many ended up using AWS as part of that effort.
- sheeshkebab 8y ago
  The only thing amazon seems to profit on is AWS

netwanderer3 8y ago

I always shit on Facebook in the past but I have to be honest, their ad campaigns don't require buyers to do keywords research which is often a major pain. In addition, they seem to know a lot more about their end users so it's easier to target the exact customer groups you want. Years of unethical privacy practices have probably given them certain advantages in this area. I was completely horrified when I learned you could upload a CSV list of all your customers email addresses and FB will match and display ads to this exact group. At least on Facebook I feel like I personally have a little more control over how/when/where my ads will appear as opposed to Google's process where much of it is dictated by their algorithms. Not a fan of Facebook still but I can totally see why their ad products are working well for some businesses.