Amazon and Google posted their Q4 2020 earnings in early February 2021, which saw both tech giants reporting great numbers in spite of the coronavirus outbreak thanks to a rebound in ad expenditure in the last parts of the year.
Amazon reported a slight drop in its shares following its first $100bn quarter thanks to a great holiday season and surge in shopping during the pandemic.
The company’s ‘other’ category, which is primarily advertising and marketing, managed to bring in $7.9bn revenue, which is a 64% increase from 2019.
Amazon Chief Financial Officer Brian Olsavsky reported that the company saw ad expenditure make a comeback as 2020 progressed, noting how their moving of Prime Day to the last quarter of 2020 got a lot of attention.
Analysts say that Amazon’s foothold in the ad industry continued in 2020, with a survey of senior ad buyers in the US, who account for $15bn in US ad expenditure, saying that they believe Amazon will be the lead market share gaining company for 2021 and 2022.
Google’s parent company, Alphabet reported a 6% increase in share value following the market opening.
Google itself saw revenue go up by 23% year-on-year in 2020, an indicator of how well its ad business bounced back following the slowdown during Q2 2020, in the midst of the worst of the coronavirus outbreak.
Google ad revenue for Q4 2020 went up to $46.20bn, up 22% from Q4 2019’s $37.93bn. Experts say that it’s a sign of the comeback following the COVID-19 pandemic, where advertisers cut down on ad spending, which was reflected in king kong advertising reviews and the like.
YouTube ads reported a record revenue of $6.89bn in Q4 2020, a 46% increase from Q4 2019. Executives also noted that there were more viewers, and spent more time watching videos.