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A little known part of Amazon is growing fast — and directly competes with Google and Facebook (AMZN)

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According to Amazon’s latest earnings, the
“other” revenue from its North America business — believed to be mostly
comprised of its online advertising sales — saw the biggest
year-over-year jump of any part of Amazon, at 60% in 2016. It recorded
$1.3 billion in annual revenue. Although that’s tiny compared to Google’s $80 billion in ad revenue,
it shows Amazon has been quietly ramping up its online advertising
offerings, and could one day be a major threat in the industry.


In fact, during Amazon’s earnings call with investors on Thursday,
UBS analyst Eric Sheridan pointed out this growth, asking where the
company sees its advertising business going longer term.

Amazon’s CFO Brian Olsavsky didn’t share much, stressing it’s “very
early,” but did agree its online advertising business is a “good
strategy” for the company.

“Our goals there are to be helpful to customers and enhance
their shopping and viewing experiences, mostly with targeted
recommendations. We think that’s a good strategy rather than invasive
things that take away from the shopping experience,” Olsavsky said
during the call.

Olsavsky also said “sponsored product” ads are “off to a great
start” and a “very effective way” to reach interested customers, while
adding the company’s working on some pre-roll video ads as well.

“For the most part, we like the progression. We are balancing
customer experience with advertising at all times, and we like the team
that’s working on it,” he added.

Overlooked part of the business

Although Amazon rarely talks about its sprawling advertising
business, there’s been some speculation that it could end up becoming a
major part of the company’s overall business.

UBS’s Sheridan wrote in a recent note that Amazon is continuing to
expand its marketing platform by offering more “sophisticated and
targeted” advertising solutions, although its revenue is still small.

“We believe the long-term potential of Amazon’s advertising business
is still largely overlooked despite Amazon’s large reach (over 300m
active customers),” Sheridan wrote.

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(UBS)

According to Bloomberg’s Shira Ovide and Leila Abboud,
Amazon’s ad business is estimated to have generated roughly $1.2
billion in 2016. If you apply Facebook’s operating margin, Amazon’s ad
business would have made $395 million in operating income last year, a
solid 18% of Amazon’s total operating income.

During the earnings call, Darin Manney, Amazon’s head of IR,
cautioned against making a big deal out of the jump in “other” revenue,
stressing that it includes revenue from its co-branded credit card
arrangements and other types of advertising deals.

Still, Amazon seems to be drawing a lot of attention from industry big wigs, including WPP CEO Martin Sorrell, who, according to Bloomberg, recently said: “The company that would worry me if I was a client — or I think worries our clients, more than Google and Facebook — is Amazon.”

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Ike Ani is a Freelance writer whose quest constantly is to relate happenings around the world to human daily living. He's also a song writer and singer, Acoustic Guitarist, and Teacher.

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Lifestyle

L. A Prisoners Infect Themselves With Coronavirus To Get Early Release (VIDEO)

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A group of silly L.A area prison inmates were very eager to contract the dreaded coronavirus .

They attempted this because they believed that would trigger their ticket out of prison.

According to the L.A. County Sheriff Alex Villanueva who made the startling revelation Monday, said about twenty-four (24) inmates at the Pitchess Detention Center in Castaic attempted (and somewhat succeeded, apparently) to infect themselves way back in mid-April 2020.

The Sheriff revealed that their department saw an increase in spike in confirmed cases out of nowhere.

He said that when they investigated, they found a high number of inmates living in one block of the prison appeared to be deliberately trying to infect each other with COVID-19 any way they could from behind bars.

When Alex Villanueva played the surveillance footages he and his team combed through carefully , and it showed several inmates hanging out in a common area and passing around what Alex described as a hot cup of water, as well as one face mask they’d each put on all in hopes of getting sympathy from a judge to spring them from the facility and let them go home.

But it turns out, their little ploy worked but, only halfway.

Villanueva reported that 21 of the inmates (out of 50 in the block) caught the ‘Coronavirus.

“What they won’t catch is a break” said the Sheriff.

Watch the Video HERE

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COVID-19 LOCKDOWN: 12 Year Old Albino Girl Suffers Eye Problems After Hawking Veggies In Abuja (PHOTOS)

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A very sad Facebook post greeted Nigerians from Abuja showing a 12 year old Albino Girl Grace, who started developing sight problems after Hawking Veggies under the scorching sun in Abuja.

The Facebook post stated that the little girl was asked to hawk the veggies by her aunt whom she lives with.

Below are the Screenshots of the Facebook post:

This sad news has sparked an outrage by well meaning individuals who spoke against such cruelty and insensitivity of the said girl’s aunt.

what do you think of this? Drop your comments below.

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“Buhari is Made In London” – Reno Omokri Blasts Presidency On Nigerian Made Products

The Buhari administration has been known for enforcing the Nigerian people to patronize Nigerian made goods though without much strategy to make life easier while this transition to economic growth is enforced.

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Reno Omokri Nuggets

The Buhari administration has been known for enforcing the Nigerian people to patronize Nigerian made goods though without much strategy to make life easier while this transition to economic growth is enforced. Many Nigerians have tagged it a harsh move that is insensitive and inhumane but moreso, Reno Omokri has singled out signals of hypocrisy in the President of Nigeria by outlining certain traits of family moves of the President that shows that he(Buhari) as the No.1 citizen has no regards for anything made in Nigeria but yet wants other Nigerians to embrace Nigerian made goods.

Reno Omokri ‘s tweet reads:

His kids schooled in England. His wife just returned from a 3 month UK stay. His daughter gave birth to his grandchild in Spain (made in Spain), yet
@MBuhari
, who is London, wants us to patronise made in Nigeria!

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