Amazon earns more ad revenue than Youtube

Its surprising that an e-commerce company which was primarily meant to earn money via sales has more ad revenue than a platform which was established with their main source of income being through advertisements.

Amazon earned $41 bn in ads while Youtube’s ad revenues stood at $29.2 bn for the year 2022. It is to be noted that this is not a rare occurrence when Amazon beat Youtube on ad revenues. Many brands publish their ads on Amazon platform due to its behemoth user base and global dominance in the ecommerce industry. Placing ads at Amazon increases their sales and moreover evn consumers tend to browse on Amazon for hours before buying the product. They go through the product desciptions, reviews and ratings before coming tot he conclusion of whether to buy or not. As the users spend such a long time on Amzon it guarantees user engagement and also the conversions are high for brands advertising on Amazon because majority of the people visiting it come with an intention to purchase something vis-a-vis other platforms where people go to consume contents and not buy. As the intention is already there it becomes easy to convert them into final customers. Even in 2021 Amazon’s ad revenues at $31 bn were slightly higher than Youtube’s ad revenues of $28.8 bn. However, the gap widened significantly this year.