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?
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.