Amazon.com is expected to emerge as a winner in the digital
advertising arena, surviving Apple's privacy changes better than rivals
Facebook and Snap.
The e-commerce giant's vast trove of customer shopping data
reduces its reliance on tracking info once provided by Apple's iOS mobile
operating system.
Others including Alphabet Inc, which also collects a rich
set of data from users' search habits, reported a 41% surge in Google
advertising revenue for the third quarter, a sign that businesses that rely
less on targeted ads are able to overcome Apple's limits on tracking mobile
users.
Amazon, which reports earnings on Thursday, does not break
out its advertising sales, but nestles it in its "other" business
segment.
"Google and Amazon require a user to already be looking
for something, therefore aren't as reliant on cookies," Eduardo Cruz,
performance marketing manager at SupplyKick.
"For brands selling a physical product, Amazon Ads are
a powerful way to drive purchases, increase product consideration, and reach
customers."
Apple's advertising business has surged since it prevented
advertisers from tracking iPhone users without their consent in April, eating
into market share once occupied by Facebook, Instagram and Snap.
The iPhone maker will report fourth-quarter results on
Thursday.
Most Facebook users access the social networking platform
through a mobile device, with nearly 15% of adults using iPhones and iPads in
July, according to data firm Data Reportal.
Twitter, which relies on targeted ads but not as much as
Facebook, reported advertising revenue in line with estimates.
Wall Street analysts said since the majority of advertising
on Twitter comes from Brands, especially services or digital, as opposed to
Direct ads, the company was better positioned to overcome the privacy changes
than Facebook or Snap.
To be sure, the digital advertising market is still booming
exponentially as the pandemic led to more consumers shopping online and
spending more time on social media. Like Facebook and Snap, Google's YouTube
saw a modest hit, the company said, primarily in direct-response advertising.
"This is the early innings of a shift that will play
out over several quarters," Andrew Lipsman, eMarketer principal analyst at
Insider Intelligence, said.
"The strength that we've seen in the past few quarters
has remained, but it is starting to shift a little bit between the different
players." -Reuters
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