Amazon’s Q2 ’18 Earnings – The Numbers that Mattered
Coming off its biggest sales day ever, Amazon reported a hugely successful second quarter. We gathered some of the most critical, and relevant numbers for marketers and retailers. Our CEO, Chris Paradysz, and our new Director of Marketplaces, Ty Sharpe, shared their thoughts.
I think part of what we’re seeing on the advertising side are the early indicators of the grassroots growth of the business. Probably the initial phases of hockey stick growth rates, particularly as dollars move out of more conventional platforms, and over to Amazon. Secondarily, we may be seeing the early signs of ad dollars shifting over to Amazon for more brand product awareness and engagement, as opposed to only conversion, down-funnel e-commerce activity. That’s a big shift for them.
We’re barley seeing the explosive growth that’s going to occur in Voice, voice-activation, brand positioning and brands’ abilities to use voice to differentiate. We can’t really see it in the numbers yet, but Amazon has a pretty big head start in the market.
I’m also intrigued by the somewhat disproportionate growth of the Marketplace side of the business, and the rate of growth.
“From the retail perspective, we really see Amazon now shifting from a focus on revenue to a focus on profitability. But the core of their whole infrastructure in retail is still about serving people. You’ll see them integrate more businesses like PillPack into the mix, because they want to be that one place someone can go to get everything they need. It’s all about serving the customer. Whole Foods and PillPack acquisitions are just the tip of the iceberg.”
Amazon’s Chief Financial Officer, Brian Olsavsky, noted that the company is, “very bullish on international investment.”
“They also know that Alibaba is right around the corner, eyeing the US market. International expansion requires a careful buildout of infrastructure, and it’s both an opportunity and a challenge for Amazon right now. We’ll be watching that.”