Amazon’s advertising business is growing rapidly. Its massive “other” business category revenue, which is primarily and not exclusively is advertisement revenue, grew 77% in the first three months of 2021 to $6.9 billion.
Apple has recently made privacy changes, which make it easier for its consumers to block advertisers from tracking them, this can add more fuel to Amazon’s rapid growth.
Amazon holds an extensive amount of in-depth customer data as of last month. The company said that it had 200 million plus global members in its Prime program. As Apple’s App Tracking Transparency changes will go into effect, Amazon’s data will most likely become a rarer and more valuable commodity for marketers and that will benefit Amazon.
Apple’s recent change to iOS 14.5 is expected to significantly impact the ability of advertisers for targeting ads the way they previously have been, since most people would like to not opt in to let the other apps track them.
As Amazon has a huge number of and strong first-party relationship with its consumers, it can provide marketers this huge data than they will be able to get from other platforms when they will have less access to use third-party data due to Apple’s recent move.
The new move of Apple matters less to Amazon. When users will log in to Amazon account, Amazon can be able to track what users are doing in the app, and which ads they have viewed or clicked. They can also track from where consumers are purchasing from, regardless of whether a user opted in or not for advertisements.
