BC TECH
Saved by @AnmolNarula11

For decades, Jeff Bezos shunned ads.

But now, Amazon’s ad business is huge: it’s on a $30B+ annual run rate (more than 2x the combined sales of Twitter, Snap and Pinterest).

Here’s how it happened 🧵

 1/ Amazon doesn’t break out its ad business separately in financial filings. However, most analyst believe ads make up the majority of its “Other” revenue segment.

This figure has exploded from $1B in 2015 to a current annual run rate of ~$32B.
2/ In 2009, Bezos said “ads are the price you pay for a crappy product”.

But the business is so lucrative that Amazon’s interface has been swamped with ads:

◻️ First 3-7 search results (left in red)
◻️ Most of the product page (right in blue)
3/ Prior to the rise of ads, Amazon set out to build the ultimate organic customer recommendations engine.

The approach was codified in a famed 2003 research paper: “Amazon Recommendations: Item-to-Item Collaborative Filtering.”
4/ In recent years, Amazon organic recommendations:

◻️"Customers who bought this also bought this"
◻️"Customers who viewed also viewed"

Have been replaced w/ ads:

◻️ "Sponsored products related to"
◻️ "Brands related to this category"
5/ One of the few organic recommendations that still display is the trusty-old "Frequently bought together" feature.

(Of course, increasing the goods in someone's basket is worthwhile for Amazon)
6/ The road to Amazon ads started in 2005.

While Bezos didn’t like ads, he tapped Paul Kotas (who worked w/ him at DE Shaw) to run experiments on AMZN's valuable digital real estate.

The 1st project was banner ads. But it directed users off the platform and the idea was canned.
7/ The real motivation to build an ad business was spurred on by another tech giant: Google.

Amazon was dependent on Google search slots to drive traffic. The company even created a “Google Reliance” metric to track this dependence…which could potentially be existential.
8/ Google, of course, occupies a lucrative part of the buying funnel. It sells ads at the point that someone shows intent for a purchase.

However, Amazon owns the last foot of the transaction funnel: the purchase.

And, today, 60%+ of product searches actually start on Amazon.
9/ Amazon’s transaction data is valuable for 3rd-party merchants, which have grown from 3% of Amazon sales (2000) to ~60% of its $300B+ retail sales (2021).

To stand out, sellers are wiling to pay for sponsored placements (just like brands buying grocery store shelf space)
10/ Amazon sells a number of ad products:

◻️ sponsored products (search)
◻️ sponsored brand
◻️ sponsored display ads
◻️ sponsored posts
◻️ sponsored videos

Ads have grown so much that -- in 2018 -- it passed MSFT to become the 3rd biggest digital advertiser after FB and GOOGL.
11/ While Amazon says that ads are *optional*, getting buried on page 5 of search results is bad for business.

The avg. cost per click (CPC) on Amazon Ads is climbing. And it's not uncommon for merchants (~5m on Amazon) to spend up to 50% of a product on listing fees and ads.
12/ The economics of running a 3rd-party merchant business is trending towards scale.

A number of companies are raising big money to "roll up" Amazon merchants:

◻️ Thrasio ($3.4B raised)
◻️ Perch ($909m)
◻️ Heyday($800m)
◻️ Razor Group ($560m)
◻️Elevate Brands ($373m)
13/ Is Ads already Amazon's most profitable business line?

Using Google's 68% margin for its core business as a comp, Benedict Evans writes:

"Given [Amazon Ads] margin structure and incremental cost base, it's highly likely to be generating similar absolute profits to AWS." 🤯
14/ If you enjoyed that, I write threads breaking down tech and business 1-2x a week.

Def follow @TrungTPhan to catch them in your feed.

Here's a one that might tickle your fancy: https://t.co/B3SWUCF2cd
15/ Also: check out my Saturday email for some laughs, insights and the easiest way to stay on top of my content.
https://t.co/jGZs8brnVR
16/ Sources

BI: https://t.co/jlQcktIFEi

The Information: https://t.co/fKOEJAFEwv

CNBC: https://t.co/HBtXX54cjP

Inc: https://t.co/BzHCfFTvHN

Marketplace Pulse: https://t.co/oDFsn3GVG3
17/ Based on the latest quarterly filings, Amazon's "Other" segment -- mostly ads -- is currently on a $32B annual run rate (+49% YoY).

That's more than 2x the combined sales of Twitter, Snap and Pinterest ($12B).
18/ Here ere is the article from @benedictevans https://t.co/Q9xeimUowL

More from Trung Phan 🇨🇦

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𝚃𝚛𝚞𝚗𝚐 𝙿𝚑𝚊𝚗 🇨🇦...
@TrungTPhan
1/ Amazon is famous for its writing culture:

• "Mock press releases / FAQs" for new product pitches
• "6-page memos" instead of Powerpoint

Two former Amazon execs wrote a book called "Working Backwards" detailing the philosophy.

Here are some insights 🧵


2/ The "Working Backwards" playbook

Instead of creating a product then finding customers, Amazon asks "What does the customer need?" and works toward the product.

✅Customer need --> Create product
❌Create product --> Find customer

3/ Write a mock press release

To determine if the customer need makes biz sense, employees write a press release:

• What problem is the new product solving
• Why it's better than existing options

To persuade a customer, the document has to be jargon-free and tell a story.


4/ Press release forces big thinking

You don't write a press release for an incremental improvements.

Creating a product worthy of a press release means really solving a customer problem and going after markets with large TAMs.

5/ Include an FAQ in press release

Addressing every potential customer question can help identify hurdles to getting something to market...and also uncover opportunities.
CULTURE
Trung Phan \U0001f1e8\U0001f1e6
Trung Phan 🇨🇦...
@TrungTPhan
Peter Thiel's 2014 Reddit AMA is full of nuggets 🧵

1/ His biggest investing mistake was *not* doubling down on Facebook


2/ Thoughts when he first met Elon


3/ Whether he has a "ban" on hiring MBAs


4/ Why he invested in SpaceX


5/ His reaction to the movie The Social Network
ALL
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Trung Phan \U0001f1e8\U0001f1e6
Trung Phan 🇨🇦...
@TrungTPhan
A Netflix user will browse the app for 90 seconds and leave if they find nothing.

Thumbnail artwork is actually NFLX's most effective lever to influence a viewer's choice. A user will look at one for only 1.8 seconds, so NFLX spends huge to optimize them.

Here's a breakdown🧵


1/ Spoiler alert: humans are visual animals.

Our eyes move 3-4x per second to process information and we can analyze an image in as little as 13 milliseconds.


2/ In 2014, Netflix consumer research showed that thumbnail artwork:

◻️ is "the biggest influencer...to watch content"
◻️ is the focus of 82% of browsing time

A user looks at one for only 1.8 seconds. If they can't find Netflix content in 90 seconds, they'll leave the app.


3/ Consequently, Netflix uses an elaborate thumbnail selection process for each of its 200m+ users.

The process is called aestethic visual analysis (AVA), which starts by pulling all the frames from a video.

For reference: a 1hr episode of "Stranger Things" has 86k frames.


4/ In a process known as "Frame Annotation", each frame is tagged with metadata identifying key variables:

◻️ Saliency
◻️ Frame #
◻️ Brightness / Contrast
◻️ Nudity probability
◻️ Face / skin tone
ALL , MARKETING INSIGHTS
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𝚃𝚛𝚞𝚗𝚐 𝙿𝚑𝚊𝚗 🇨🇦...
@TrungTPhan
1/ Marcus Bullock went to prison in the mid-90s at the age of 15.

Today, he's the CEO of Flikshop -- the "Instagram for the Incarcerated", an alternative to the outrageously expensive phone call system.

This is a truly inspirational founder story 👇👇


2/ In 1996, Bullock was living in Maryland. One night, he and a friend carried out an armed carjacking on a man sitting idle in a shopping mall parking lot.

It was the biggest mistake of this life.

3/ Several years prior to hit actions, there was the famed 1989 Central Park "Jogger Case", in which 5 minority youths were (falsely) accused of raping a jogger.

In the aftermath, nearly every state passed new laws that made it easier for courts to try youth as adults.


4/ For the carjacking, Bullock was charged as an adult and served 8 years in prison.

With onerous prison phone charges ($18 / 15 mins), Bullock's mother kept in touch with him by sending a photo or letter every day.

"She saved me," he says of his mom's efforts.


5/ The $1.2B+ prison phone system is dominated by 2 PE-backed firms (Global Tel Link, Securus Tech).

For the right to operate these phones lines, prisons effectively pay kickbacks to state and local government. The highest kickbacks win bids, which drive up costs.
CULTURE
Trung Phan \U0001f1e8\U0001f1e6
Trung Phan 🇨🇦...
@TrungTPhan
At 40, Jim Simons left a famed math career to launch the most successful hedge fund ever: Renaissance Tech.

Even though it only won 51% of trades, the fund made 66%/yr for 30yrs (Simons worth = $25B). It's a story of genius, but also of how hard it is to beat markets.

THREAD🧵


1/ The crown jewel of RenTech is The Medallion Fund (launched in 1988).

◻️ From 1988-2018, it posted a return of 66%/yr (39% after fees)
◻️$1 invested in 1988 is now worth $14m+
◻️ Cumulative profit = $100B+ even with an avg. fund size of only $4.5B


2/ Before creating what Bloomberg calls the “greatest money-making machine ever”, Simons was a legendary mathematician.


3/ While at Stony Brook, Simons started trading commodities (with money staked by former MIT classmates).

The side investing was good enough that Simons -- also going through a divorce -- decided to leave academia and launch his own money management firm in 1978: Monemetrics.

4/ At the time, there were 2 main investment approaches:

◻️ Fundamental (understanding and forecasting an asset based on key drivers)
◻️ Technical analysis (studying price charts)

Simons’ strategy was to place a “fundamental lens” on currencies (eg. supply and demand).
ALL

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Patrick McKenzie
Patrick McKenzie
@patio11
Torn between "I think losing $100 million when someone beats you at security research is pretty much exactly what you signed up for doing yield farming" and "Maaaaaaaybe not the future of finance you were expecting, huh."

How to put this in regular finance terms...

Suppose hypothetically you have an account at a brokerage with some valuable asset in it. You take a margin loan against that asset to fund your normal spending, or pay a tax bill, or maybe buy something at another brokerage.

For reasons known only to the brokerage, they don't denominate your loan in dollars. They denominate it in shares of a money market fund, which are worth $1 +/- epsilon and basically never deviate from that.

And you think "Hmm, I have a large equity cushion against this loan."

One day, a computer system at the brokerage reports, sorta-kinda erroneously, that the value of the money market fund is actually $1.30 per share. The equity cushion is gone. Your valuable asset is sold, at timing you didn't choose, at wrong price, to pay an inflated phantom debt

And your recourse is... probably tweeting at patio11 saying he finds too much joy in this.

Which I don't; I just feel like this is why you don't trust a CPU built out of redstone to build reliable financial infrastructure on top of.
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Aditya Todmal
Aditya Todmal
@AdityaTodmal
The absolute best 15 scanners which experts are using.

Got these scanners from the following accounts:

1. @Pathik_Trader
2. @sanjufunda
3. @sanstocktrader
4. @SouravSenguptaI
5. @Rishikesh_ADX

Share for the benefit of everyone.

Listing all scanners from @Pathik_Trader Sir first.

1. Open

2. 80-20 Reversal Setup


3. Fake

4. Trapping Inside Bar (Positional Setup)
TECH , STOCKLEARNINGS , STOCKS
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Kevin Roose
Kevin Roose
@kevinroose
On press call, Zuckerberg says FB users "naturally engage more with sensational content" that comes close to violating its rules. Compares it to cable TV and tabloids, and says, "This seems to be true regardless of where we set our policy lines."

Zuckerberg says FB is in the process of setting up a "new independent body" that users will be able to appeal content takedowns to. Sort of like the "Facebook Supreme Court" idea he previewed earlier this year.

Zuckerberg: "One of my biggest lessons from this year is that when you connect more than 2 billion people, you’re going to see the good and bad of humanity."

This is how Facebook says it's trying to change the engagement pattern on its services. https://t.co/3p0PGc912o


.@RebeccaJarvis asks Zuckerberg if anyone is going to lose their job over the revelations in the NYT story. He dodges, says that personnel issues aren't a public matter, and that employee performance is evaluated all the time.
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Gbenga Samuel-Wemimo
Gbenga Samuel-Wemimo
@GbengaWemimo
An apostle was addressing his own members
If not for technology, you wouldn't be privy to his discussion with his members
He was sharing with them within the context of their understanding of his message, nature, and personality how he thrived in the middle of a season of casting

down
He mentioned what he achieved and even though it might sound like a boast, he was not boasting to you
He was boasting to his church members and as such, you cannot call it a boast
A father does not need to boast to his children and a shepherd surely does not need to boast to

his sheep
Newspapers needed a scandal and felt the message of the apostle was the right fit in their quest to get eyeballs
You read it and you began to insult the apostle
You, the son of a dog from Abatan refuse dump decided to drag an apostle on Twitter
Do you understand what it

means to be an apostle?
The angels working with an apostle are innumerable, they do not only work at his command, but they also work at his behest!
They are entrusted with the duty of ensuring that the Lordship of his office is respected by both spiritual and mundane entities

In the days of Jesus, many of the Pharisees and religious leaders treated his words and actions the same way many of the gutter bred stone casters with 100 Naira data and stolen or London used phone treated the words of the apostle
Jesus warned them at the time that they were
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Ameya
Ameya
@Finstor85
After getting good feedback on yesterday's thread on #routemobile I think it is logical to do a bit in-depth technical study. Place #twilio at center, keep #routemobile & #tanla at the periphery & see who is each placed.


This thread is inspired by one of the articles I read on the-ken about #postman API & how they are transforming & expediting software product delivery & consumption, leading to enhanced developer productivity.

We all know that #Twilio offers host of APIs that can be readily used for faster integration by anyone who wants to have communication capabilities. Before we move ahead, let's get a few things cleared out.

Can anyone build the programming capability to process payments or communication capabilities? Yes, but will they, the answer is NO. Companies prefer to consume APIs offered by likes of #Stripe #twilio #Shopify #razorpay etc.

This offers two benefits - faster time to market, of course that means no need to re-invent the wheel + not worrying of compliance around payment process or communication regulations. This makes entire ecosystem extremely agile
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Gather round, Gentle Readers. It is time I tell the story of the worst decision I ever made in an office. Some of you have heard this. Some have not. Whatever you do in your office today, this week, the rest of this year, you can console yourself by recalling this tale.

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I'm sure you're thinking, "Quinn, it's the entertainment industry, they are all insane." Yes, many are. So consider this; if you told someone you worked for Susan, people who worked for insane people would look and you and whisper, "I hear she's insane."
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A thread on an interesting report by Goldman Sachs' Peter Oppenheimer, the bank's chief global equity strategist. He points out that Goldman's "Bear Market Risk Indicator" is looking ominous.


There are three factors that suggest that the recent stability could evaporate and that equities are "about to enter a sustained bear market", Oppenheimer says.

First is the fact that growth, inflation and interest rate outlook is unfriendly for equities.


Second is that greater volatility, such as multiple corrections and new peaks (which we've seen in 2018) tend to presage a full bear market.


Here is Goldman's data showing how falls and bounces tend to come ahead of "the dramatic final fall".
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Akshaya Sivaraman
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1/ More creating, less consuming

I stopped obsessive mindless scrolling and started creating. Instagram for artworks. Twitter for thoughts. Unsubscribed from other apps. Saved a LOT of time.

2/ More deep focus, less context switching

I loved to be involved in many projects, but didn’t take into account the cost of making the mind switch between works. I decided to choose one important project and pour all of me into it.

3/ “It’s either hell yeah, or no”

I dropped projects that didn’t make me feel all fervent. I ruthlessly purged the guilt and FOMO. It was hella scary and uncomfortable at first, but was liberating over time. Knowing your why is the key.

4/ More focus on health and people

I was generous with time when it was for my health and people. I exercised, did yoga, went on for walks, and slept whenever I wanted. Same way, I didn’t look at the clock when I was with people. I resolved to be there and only there.

5/ Less worrying about saying no

Well, this was perhaps the toughest one for me. I was so used to being involved in many projects, that retracting myself from them was almost impossible. It was SO painful. Yet, I trusted it would be a wise choice long term and bore the pain.
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Alathiyur Hanuman Temple
Malappuram, Kerala 🚩
#keralatemples

One of the Powerful Anjaneya Temples in Kerala. Hanuman temple is adjacent to Shri Ramar Sannidhi. Here Hanuman's head is tilted towards the left to hear Shri Rama's words. Shri Rama is entrusting Hanuman👇


Task of locating Mata Sita in Lanka.

Prathishta of Hanuman is done by Sage Vasishta. Eventhough this is Shri Ram Temple, importance is given to Hanuman
Shri Rama shares with Hanuman the Abhignana Vaakhyam, the words that would enable him to gain the confidence of Mata Seetha.


Hanuman stands leaning a little towards the left, showing how he hear Shri Rama's words and also assuring him Your Wish is my Command.
The Vigraham of Hanuman gives us the Strength, Confidence and Bhakthi.
There is a place marked here to show Hanuman’s leap to Lanka over sea.


Devotees run and leap over the stone for better health.Aval Naivedhyam is famous here. Those children who have nightmares are told to pray Alathiyur Hanuman. Mantra 👇

Alathiyur Hanumane
Pedi Swampnam kanarudhe
Pedi Swapnam Kandalo
Val Kondu Thattiyunarthename
🙏🕉🙏
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