The growth rate of Amazon's ad business is plunging but revenue is still up

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The growth of Amazon's ad business slowed down for the first time in more than a year.

Amazon made $2.7 billion during the first quarter from advertising, representing a 36% year-over-year jump.

Ahead of earnings, Trip Miller, Gullane Capital Partners managing partner and Amazon shareholder, told Business Insider that advertising is one of the top two or three growth areas of the company. Amazon has been ramping up its pitch to advertisers and is currently hiring 1,200 advertising roles across eight of its teams.During the first quarter of 2019, Amazon made $2.7 billion from advertising, which is labeled as a line item called"other." The ad revenue represents 36% year-over-year growth but is a dip fromWhile Amazon's ad business is bigger year-over-year for the quarter, its growth rate is plummeting.

Ahead of earnings, Amazon shareholder Trip Miller, managing partner of Gullane Capital Partners, said that advertising is one of the three biggest growth areas for Amazon and that it has an edge in going into"multiple, vertical opportunities" compared to other digital advertising companies. "Other than regulation, Amazon is the biggest risk to Alphabet on the search side," he said."If you're not doing business with Amazon, especially on the advertising side, over the next five years, you're losing."

 

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