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Amazon Seen Triumphing Over Apple Privacy Changes in Digital ad Business

Amazon seen triumphing over Apple privacy changes in digital ad business
Amazon app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration

Oct 27 (Reuters) – (AMZN.O) is foreseen to appear as a winner in the digital advertisement arena, withstanding Apple’s (AAPL.O) privacy shifts better than rivals Facebook (FB.O) and Snap (SNAP.N).

The eCommerce giant’s vast trove of shopping data reduces its dependence on tracking info once given by Apple’s iOS mobile operating system.

Others, including Alphabet Inc (GOOGL.O), which also receives a rich set of data from users’ search habits, listed a 41% surge in Google advertising income for the third quarter. Signal that companies that rely less on targeted ads can defeat Apple’s limits on tracking mobile users.

Amazon, which publishes earnings on Thursday, does not break out its advertisement sales but snuggles it in its “other” business segment.”Google and Amazon need a user to be already scanning for something, hence aren’t as reliant on cookies,” Eduardo Cruz, performance marketing supervisor 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.

According to data firm Data Report, most Facebook users access the social networking platform through a mobile device, with nearly 15% of adults using iPhones and iPads in July.

Twitter (TWTR.N), which relies on targeted ads but not as much as Facebook, reported advertising revenue in line with estimates. read more

Wall Street analysts said since most 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.”

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