Amazon’s Q4 2020 results reflect how much further the company goes beyond its e-commerce business, with key investments in its analytical layer being fundamental.

Why it matters

A 66% year-on-year growth in advertising reflects a powerful total proposition, which, as outgoing CEO Jeff Bezos points out, has been about normalising otherwise remarkable inventions.

Takeaways

  • With the might of Amazon Web Services deep learning technology, its basic offers of sponsored listings and brands are becoming stronger, but the company is also making greater use of its video capabilities for advertising.

  • Amazon Prime is an industrialised example of growing profitability through loyalty, as well as maintaining an important pool of customers with whom to test upcoming products.

  • Amazon’s capabilities illustrate why a reputation as a one-stop-shop is more important than ever in a hyper-complex world.

  • Inventions don’t really matter unless they become useful enough to be normal.

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Sourced from WARC