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Amazon experienced a 24% increase in advertising revenue during the first quarter.

Amazon reported a remarkable 24% growth in its advertising unit, indicating a strong rebound in the digital advertising market. The ad revenue soared to $11.8 billion in the first quarter, up from $9.5 billion the previous year, surpassing analysts’ expectations of $11.7 billion as per StreetAccount.

Even though online retail and cloud computing remain Amazon’s primary revenue sources, the company sees advertising as a key area for further growth and profitability amidst slower expansion in other segments. The resurgence in digital advertising follows a tough 2022 when brands cut down on ad spending due to inflation and rising interest rates.

Meta, Snap, and Google’s parent company Alphabet also demonstrated strong revenue growth in their ad businesses. Meta reported a 27% increase in first-quarter revenue, Alphabet’s ad revenue rose by 13%, and Snap experienced a 21% revenue surge, suggesting a positive trend in the tech industry.

Alphabet’s YouTube ad revenue saw a significant spike of 21%, aiding the company’s overall growth of 15%, reminiscent of the performance seen in 2022. Investors responded positively to the results, with Alphabet’s stock experiencing a 10% increase, the most significant surge since 2015.

Investors and analysts have been closely monitoring the performance of tech giants like Amazon, Meta, and Alphabet. The positive results reflect the resilience and adaptability of these companies in the ever-evolving digital landscape.

The surge in advertising revenue highlights Amazon’s increasing dominance in the digital ad market and its strategic positioning for continued growth in the coming years.

WATCH: Amazon is positioned really well for 2024

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