Q1 Amazon Earnings: Two data points of note for advertisers

Amazon reported earnings last week for Q1 2020. COVID-19 has introduced uncertainty into the plans of many advertisers. In this context, we looked for data points that could shed some light on what to expect going forward. Below are two metrics of note:

1. Q2 – 2020 sales growth guidance between 18% and 28%

Net sales growth guidance for Q2 2020 is between 18% and 28%. Note that in the past several quarters, Amazon has consistently met or exceeded the high end of the guidance (see table below).

2. Advertising revenue grew by 44%  in Q1

The advertising juggernaut continues to roll, with a 44% growth in Q1 Amazon’s earnings. With a sales guidance of 18% to 28%, expect to see good advertising growth numbers in Q2 2020 as well.

Amazon Quarterly results

Note: Advertising revenue is reported under the “Other” line item in the quarterly filings. “Other” includes sales of advertising services, as well as sales related to our other service offerings. 

 

Read our post “Re-Evaluating Amazon Advertising Plans because of COVID-19?” for tips on how best to respond to changing shopping habits during the pandemic.

Share on facebook
Share on linkedin
Share on twitter

About Intentwise:

Intentwise is a Chicago-based technology company that helps brands, sellers, and agencies maximize returns from Amazon advertising spend. Intentwise’s industry-leading SaaS platform provides impactful recommendations and automation to accelerate advertising optimization while saving valuable time for advertisers.

Related Posts

Learn more about Amazon 2020 – Q3 Earnings Highlights. Amazon's net sales were up 37% to $96.1B. Advertising and 3P services were the top growth drivers. Physical store sales have declined as expected. Advertising revenue is up 49% YoY.  Year-to-date advertising revenue is around $14B. We expect 2020 ad revenue to be between $20B to $25B.
Amazon recently announced that Prime Day 2020 will run on October 13 and 14. Here are 5 last-minute items to keep in mind. Avoid running out of budgets, Avoid basic misses: Products, Keywords, Product Targets., Avoid run-away spend in auto campaigns., Raise bids on keywords that are important to you, Protect your brand term, but to a limit