Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Amazon seen triumphing over Apple privacy changes in digital ad business

Stock MarketsOct 27, 2021 08:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Amazon app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration

By Nivedita Balu

(Reuters) - Amazon.com (NASDAQ:AMZN) is expected to emerge as a winner in the digital advertising arena, surviving Apple (NASDAQ:AAPL)'s privacy changes better than rivals Facebook (NASDAQ:FB) and Snap (NYSE:SNAP).

The ecommerce giant's vast trove of customer shopping data reduces its reliance on tracking info once provided by Apple's iOS mobile operating system.

Others including Alphabet (NASDAQ:GOOGL) Inc, which also collects a rich set of data from users' search habits, reported a 41% surge in Google advertising revenue for the third quarter, a sign that businesses that rely less on targeted ads are able to overcome Apple's limits on tracking mobile users.

Amazon, which reports earnings on Thursday, does not break out its advertising sales, but nestles it in its "other" business segment.

"Google and Amazon require a user to already be looking for something, therefore aren't as reliant on cookies," Eduardo Cruz, performance marketing manager at SupplyKick.

"For brands selling a physical product, Amazon Ads are a powerful way to drive purchases, increase product consideration, and reach customers."

Apple's advertising business has surged since it prevented advertisers from tracking iPhone users without their consent in April, eating into market share once occupied by Facebook, Instagram and Snap.

The iPhone maker will report fourth-quarter results on Thursday.

Most Facebook users access the social networking platform through a mobile device, with nearly 15% of adults using iPhones and iPads in July, according to data firm Data Reportal.

Twitter (NYSE:TWTR), which relies on targeted ads but not as much as Facebook, reported advertising revenue in line with estimates.

Wall Street analysts said since the majority of advertising on Twitter comes from Brands, especially services or digital, as opposed to Direct ads, the company was better positioned to overcome the privacy changes than Facebook or Snap.

To be sure, the digital advertising market is still booming exponentially as the pandemic led to more consumers shopping online and spending more time on social media. Like Facebook and Snap, Google's YouTube saw a modest hit, the company said, primarily in direct-response advertising.

"This is the early innings of a shift that will play out over several quarters," Andrew Lipsman, eMarketer principal analyst at Insider Intelligence, said.

"The strength that we've seen in the past few quarters has remained, but it is starting to shift a little bit between the different players."

Amazon seen triumphing over Apple privacy changes in digital ad business
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email