USA | Internet Equity Research June 24, 2025 Cannes 2025: Creative Disruption in the AI Era We tuned in remotely to the annual Cannes Lions Festival of Creativity, which brings together the top advertising & marketing leaders. We left encouraged by AI's ability to innovate ad formats & performance by streamlining creative production and campaign execution. We are bullish on META, GOOGL, & AMZN's position to benefit as advertisers & marketers embrace AI to reach broader audiences across more formats with the ...

Core Insights - Samba TV and Amazon Ads conducted a study demonstrating that outcome-based advertising significantly increases movie ticket purchases through digital solutions [1][4] - The analysis involved 213 million ad impressions correlated with Fandango purchase data, providing insights into the impact of Amazon Ads on ticket sales, especially among light TV viewers [2][3] Advertising Effectiveness - Brands utilizing Amazon Ads were 8.5 times more likely to reach light TV viewers, who represented 77% of ticket purchases on Fandango, highlighting Amazon's capability to engage hard-to-reach audiences [3] - The study revealed a 23% median lift in purchase consideration and a 13% median lift in confirmed purchases on Fandango due to Amazon Ads campaigns, compared to audiences not exposed to these ads [4] Discovery and Engagement - Amazon Ads campaigns also resulted in a 17% median lift in visits to movie detail pages, indicating a strong connection between media exposure and consumer actions [4] - The combination of traditional TV marketing and Amazon Ads yielded the highest increases in awareness and purchase intent, with lifts of 2x and 5.4x respectively, emphasizing the effectiveness of an omnichannel strategy [5] Comprehensive Insights - Advertisers require access to full-funnel insights to assess campaign impact, and Samba TV's dataset spans various channels, allowing measurement of performance based on real-world outcomes [6] - Samba TV's technology provides advertisers with a unified view of the consumer journey, enhancing marketing efficiency and effectiveness [7][8]

Key Takeaways Amazon is expanding its advertising platform with new AI-powered tools and broader reach. Ads now run across Prime Video, Twitch, Pinterest, live sports and more to engage diverse audiences. New AI-powered video tools aim to enhance ad impact and attract advertisers beyond Amazon's platform.Amazon’s (AMZN) Ads helps brands connect with customers across many platforms, including Prime Video, Twitch, IMDb, live sports like the NFL and NBA, Amazon Music and popular sites like Pinterest and Buzz ...

亚马逊广告（AMAZON ADS）推出了增强型视频生成器，这是一种人工智能驱动的工具，可以创建展 示产品动作的高速视频。 ...

The Google, Apple, Meta, Amazon, and Microsoft logos appear on a smartphone screen in this ... More illustration photo in Reno, United States, on December 30, 2024. (Photo by Jaque Silva/NurPhoto via Getty Images)NurPhoto via Getty ImagesWhen Mark Zuckerberg recently described a future where advertisers would need "no creative, no targeting demographic, no measurement," it signaled an unapologetic shift toward fully autonomous advertising.Now, brands and agencies are questioning whether Amazon will pursue a ...

Financial Data and Key Metrics Changes - The company reported revenue of $155.7 billion, a 10% increase year over year excluding foreign exchange impacts [5][29] - Operating income reached $18.4 billion, up 20% year over year, exceeding guidance by approximately $400 million [5][29] - Trailing twelve-month free cash flow was $25.9 billion [5] Business Line Data and Key Metrics Changes - North America segment revenue was $92.9 billion, an 8% increase year over year [30] - International segment revenue was $33.5 billion, also an 8% increase year over year excluding foreign exchange impacts [30] - Worldwide paid units grew by 8% year over year [30] Market Data and Key Metrics Changes - Advertising revenue grew 19% year over year, contributing significantly to profitability [34] - AWS revenue was $29.3 billion, a 17% increase year over year, with an annualized revenue run rate exceeding $117 billion [36] Company Strategy and Development Direction - The company is focused on maintaining broad selection and low prices for customers, especially in uncertain economic conditions [49][51] - Investments are being made in fulfillment and transportation networks to improve delivery speeds and cost structure [37][40] - The company is diversifying production locations to mitigate risks associated with tariffs and supply chain disruptions [51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unpredictability of demand due to economic factors such as tariffs and inflation [4][10] - The company remains optimistic about capturing market share and improving customer experiences despite challenges [14][49] - Future growth in AWS is anticipated, particularly in AI services, with a multi-billion dollar annual run rate business growing at triple-digit percentages [25][44] Other Important Information - The company introduced Alexa Plus, a more capable version of its personal assistant, which is expected to enhance user engagement [26][71] - The backlog for AWS reached $189 billion, up 20% year over year, with a weighted average remaining life of 4.1 years [88] Q&A Session Summary Question: AWS and AI workload supply-demand imbalance - Management indicated that AI business is growing rapidly, but capacity constraints are limiting revenue potential [44] Question: Strategic priorities amid global trade uncertainty - Management emphasized the importance of maintaining low prices and broad selection while managing inventory effectively [49] Question: AWS revenue fluctuations and competitive growth - Management explained that revenue can be unpredictable due to varying sales cycles and the impact of AI on demand [56][62] Question: Operational focus for upcoming peak seasons - Management highlighted the need for effective inventory management and support for sellers to ensure smooth operations during key events [81] Question: Q2 EBIT guidance and tariff-related costs - Management confirmed that there are some tariff-related costs expected in Q2, but they are not significant due to pre-buying strategies [83][84] Question: AWS backlog and enterprise migration strength - Management reported a backlog of $189 billion for AWS, indicating strong future demand despite ongoing migration challenges [88]

Financial Data and Key Metrics Changes - The company reported revenue of $155.7 billion, a 10% increase year over year excluding foreign exchange impacts [6][28] - Operating income reached $18.4 billion, up 20% year over year, exceeding guidance by approximately $400 million [6][28] - Free cash flow for the trailing twelve months was $25.9 billion [6] Business Line Data and Key Metrics Changes - North America segment revenue was $92.9 billion, an 8% increase year over year [29] - International segment revenue was $33.5 billion, also an 8% increase year over year excluding foreign exchange impacts [29] - Worldwide paid units grew by 8% year over year [29] - Advertising revenue grew by 19% year over year, contributing significantly to profitability [34] Market Data and Key Metrics Changes - AWS revenue was $29.3 billion in Q1, a 17% increase year over year, with an annualized revenue run rate exceeding $117 billion [36] - The backlog for AWS was reported at $189 billion, up about 20% year over year, with a weighted average remaining life of 4.1 years [89] Company Strategy and Development Direction - The company is focused on maintaining broad selection and low prices for customers, especially in light of tariff uncertainties [50][52] - Investments are being made in fulfillment and transportation networks to improve delivery speeds and cost structure [37][40] - The company is diversifying production locations to mitigate risks associated with tariffs and supply chain disruptions [52] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate uncertain economic conditions and maintain customer trust through low prices and fast delivery [40][52] - The company is closely monitoring macroeconomic factors, including tariffs, and is prepared for various outcomes [35][39] - There is a strong focus on AI and cloud services, with expectations for significant growth in these areas over the next decade [18][36] Other Important Information - The company has launched Alexa Plus, a next-generation personal assistant, which is expected to enhance user experience significantly [25][73] - The company is investing heavily in AI capabilities, with a multi-billion dollar annual revenue run rate for its AI business [24][44] Q&A Session Summary Question: AWS and AI workload supply-demand imbalance - Management noted that the AI business is currently a multi-billion dollar annual run rate, growing triple digits year over year, but capacity constraints are limiting revenue potential [44] Question: Strategic priorities amid global trade uncertainty - Management emphasized the importance of maintaining broad selection and low prices while managing inventory effectively to ensure smooth operations during peak periods [50][82] Question: AWS revenue fluctuations and competitive growth - Management explained that revenue can be lumpy due to the unpredictable nature of enterprise sales cycles and the rapid growth of AI workloads [58][64] Question: AWS margin performance and future outlook - Management attributed strong AWS margins to growth and efficiency improvements, while also noting that margins will fluctuate based on ongoing investments [70] Question: Alexa's evolution and user behavior - Management highlighted the enhanced capabilities of Alexa Plus and the need for users to adapt to new functionalities, which are expected to improve user engagement [73][78]

For a while, it seemed like artificial intelligence (AI) was the hottest topic in the business and investing world. Companies rushed to integrate it into their products and services, investors rushed to pour money into any company dealing with AI, and the media couldn't seem to get enough of it.Many big tech companies are still betting big on AI, and the future looks promising for many of them. However, this year, the AI-fueled stock price growth many of them experienced has cooled down a bit and reversed c ...