5 Advertising Takeaways From MegaCap Earnings Reports

Advertising is a dynamic market. Here are 5 takeaways after Megacap earnings reports:

1.     Amazon’s advertising business is rapidly gaining global market share.

The scale advantage of 220 million global prime users and 2.5 million active sellers will be turbo-charged by Gen AI which will improve product search and discovery and ad placement.

2.     After a disappointing 2022, Meta’s revenue growth accelerated.

Improving monetization from Reels and Shorts, sharper targeting, and improved AI tools for advertisers contributed to growth.

3.     Google search lost share in 2022 as well as 2023.

Is search an AI winner or loser? This debate will continue until the numbers decisively tip in one direction. The burden of proof is clearly on Google to demonstrate that it can at least maintain its share.

4. YouTube maintained its share.

Investors are expecting revenue growth to accelerate in 2024 helped by AI.

5.     Snapchat and Pinterest have multiple initiatives to accelerate growth but are sub-scale competitors in a global context.