Ever since the pandemic hit the world, the industry that has gained the most is none other than e-commerce. Almost every e-commerce platform has reported enormous gains from the pandemic period. Each platform has observed its sales go up during the pandemic and the number is constantly rising.
When we talk about e-commerce giants and high revenues, then the topic would be incomplete without Amazon. For years, Amazon has been the largest e-commerce platform and has generated more revenue than any other platform in the industry.
However, those who think that e-commerce is the only mode of generating revenue for Amazon then they are greatly mistaken. The e-commerce giant generates revenues not only from the e-commerce sector but from other sectors as well. One of the major sectors it covers is a cloud-computing service called the Amazon Web Services (AWS).
Another sector that has picked up a lot of adoption and revenues during the pandemic is the cloud-computing sector. Even services similar to AWS such as Oracle and many more have all reported huge gains during the pandemic.
There is one more sector where Amazon tends to generate very high revenues from, which is the advertisement sector. The advertisement sector for Amazon is known to be another business that is growing really fast, bringing in hefty revenues.
Just recently, Amazon has confirmed that its advertisement is constantly growing and is bringing in huge revenues for the company. The tech giant has confirmed that in the first quarter of 2021, Amazon has observed that its advertisement business has grown.
Based on the performance from the first quarter, Amazon has revealed that it expects that the current (2nd quarter) will bring in even more revenues.
According to Amazon, it has generated enormous revenue from the first quarter of 2021 in the advertisement sector. As compared to the first quarter of 2020, Amazon’s advertisement unit has generated 77% more revenue in Q1 2021. In figures, Amazon has generated $6.9 billion more revenue than it has achieved in Q1 2020.
Amazon shared this information through the official Twitter page on Thursday, April 29. The company has confirmed that compared to last year’s first quarter; Amazon’s revenue has increased 7 times.
One of the executives at Amazon revealed that the major reason behind the increase in advertising revenue is directly proportional to their sales through the e-commerce sector.
The executive reported since the pandemic, the traffic on the platform has been increasing every passing day. Therefore, more advertisements are being clicked, which is bringing in more revenue for the company in return.
Amazon has confirmed that the advertisement it shows is related to the products that the users access being on the Amazon platform. Therefore, the advertisements have more chances of being picked up by the users.