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About five years ago, a revenue line buried in the back of Amazon's accounts started to get quite big. ‘Other revenue’ was over $4bn by the end of 2017, and if you looked at the notes to the notes, you discovered that this was ‘primarily’ advertising. By 2019 this had grown to $14bn, and I wrote about it here, pointing out that ‘Amazon’ was no long... See more

Amazon has built a $15bn+ ‘search ad’ business (retailers just call this marketing)

Never in human history have two of the ten largest companies on planet earth (Facebook and Google) been advertising businesses. Many of the other largest companies in the world, including Amazon, are increasing their advertising offerings. And why not: the world’s most valuable resource is harder to find than ever before, so of course more people w... See more

While allowing advertising to dictate the buy box was immensely effective at increasing their take rate (anyone who believes this is actually advertising is confused — Amazon is just increasing their take rate and calling this dynamic advertising), this may end up being a very profitable short term decision that creates significant long term pain. ... See more