Nom nom nom… looks like Amazon is eating Meta’s share of the pie.
In a surprising turn, more and more brands are shifting their ad budgets from Meta to Amazon.
Why the change?
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Marketers have long relied on Meta’s powerful ad targeting. But after Apple’s privacy updates, Meta’s targeting suffered quite a bit.
Meanwhile, Amazon has been working hard to improve its own ad tech—and the investment is paying off.
Marketers are getting ROAS from Amazon, where shoppers generally have higher intent and search for particular items.
The cup floweth over
… With cash. Amazon reported a staggering 19% year-over-year growth last quarter, while Meta saw a 4% decline, falling for the third consecutive quarter.
Of course, Amazon has just 7.3% of ad market share compared to Meta’s 20.8%. But Amazon’s continues to grow, while Meta’s continues to slide.
And Yelp needs no help
The company had a memorable last quarter, with net revenue jumping to $310M—a record-breaking 13% increase.
CFO David Schwarzbach says Yelp’s growth is due to advertisers taking advantage of its “high-intent, more affluent audience.”
Why we care
When you’ve got the budget and you’re looking to diversify, it’s helpful to know which channels are working for advertisers.
If you’re in e-commerce, Amazon is probably worth testing out, if you haven’t already.
And if you’re in retail, dining, or some other brick and mortar space, Yelp could be worth experimenting with, too.
Alex Lim
Alex Lim is a certified book reviewer and editor with over 10 years of experience in the publishing industry. He has reviewed hundreds of books for reputable magazines and websites, such as The New York Times, The Guardian, and Goodreads. Alex has a master’s degree in comparative literature from Harvard University and a PhD in literary criticism from Oxford University. He is also the author of several acclaimed books on literary theory and analysis, such as The Art of Reading and How to Write a Book Review. Alex lives in London, England with his wife and two children. You can contact him at [email protected] or follow him on Website | Twitter | Facebook
