This figure has exploded from $1B in 2015 to a current annual run rate of ~$32B.
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 🧵
This figure has exploded from $1B in 2015 to a current annual run rate of ~$32B.
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)
The approach was codified in a famed 2003 research paper: “Amazon Recommendations: Item-to-Item Collaborative Filtering.”
◻️"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"
(Of course, increasing the goods in someone's basket is worthwhile for Amazon)
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.
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.
However, Amazon owns the last foot of the transaction funnel: the purchase.
And, today, 60%+ of product searches actually start on Amazon.
To stand out, sellers are wiling to pay for sponsored placements (just like brands buying grocery store shelf space)
◻️ 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.
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.
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)
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." 🤯
Def follow @TrungTPhan to catch them in your feed.
Here's a one that might tickle your fancy: https://t.co/B3SWUCF2cd
ASML is the most important company you've never heard of.
— Trung Phan \U0001f1e8\U0001f1e6 (@TrungTPhan) August 22, 2021
The $300B+ Dutch firm makes the machines that make semiconductors. Each one costs $150m and access to them are a huge geopolitical flashpoint.
Here's a breakdown \U0001f9f5 pic.twitter.com/pARj3x7Kwo
https://t.co/jGZs8brnVR
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
More from Trung Phan 🇨🇦
The Wall Street Bets due diligence on Wendy’s is gold.
The catalysts are:
◻️ The release of a new summer salad
◻️ The @Wendys Twitter account, which has mastered “meta pragmatic roasting” (which is effective with younger people)
◻️ The fact it literally sells chicken tendies
OP:
Here’s a more fundamentals-driven analysis of Wendy’s
https://t.co/A2k19S9M7J
😂😂😂
Further Wendy’s analysis from @CliffordAsness !!
The catalysts are:
◻️ The release of a new summer salad
◻️ The @Wendys Twitter account, which has mastered “meta pragmatic roasting” (which is effective with younger people)
◻️ The fact it literally sells chicken tendies
OP:
Here’s a more fundamentals-driven analysis of Wendy’s
https://t.co/A2k19S9M7J
😂😂😂
\u201cThe name of the company is Wendy\u2019s International $WEN. It is a cutting edge high tech firm out of rural Ohio that is awaiting imminent patent approval on the next generation of summer salads that have both huge military and civilian applications.\u201d pic.twitter.com/qmk4hkKL3N
— u/1ronyman (@1ronyman1) June 8, 2021
Further Wendy’s analysis from @CliffordAsness !!
More from Tech
"I really want to break into Product Management"
make products.
"If only someone would tell me how I can get a startup to notice me."
Make Products.
"I guess it's impossible and I'll never break into the industry."
MAKE PRODUCTS.
Courtesy of @edbrisson's wonderful thread on breaking into comics – https://t.co/TgNblNSCBj – here is why the same applies to Product Management, too.
There is no better way of learning the craft of product, or proving your potential to employers, than just doing it.
You do not need anybody's permission. We don't have diplomas, nor doctorates. We can barely agree on a single standard of what a Product Manager is supposed to do.
But – there is at least one blindingly obvious industry consensus – a Product Manager makes Products.
And they don't need to be kept at the exact right temperature, given endless resource, or carefully protected in order to do this.
They find their own way.
make products.
"If only someone would tell me how I can get a startup to notice me."
Make Products.
"I guess it's impossible and I'll never break into the industry."
MAKE PRODUCTS.
Courtesy of @edbrisson's wonderful thread on breaking into comics – https://t.co/TgNblNSCBj – here is why the same applies to Product Management, too.
"I really want to break into comics"
— Ed Brisson (@edbrisson) December 4, 2018
make comics.
"If only someone would tell me how I can get an editor to notice me."
Make Comics.
"I guess it's impossible and I'll never break into the industry."
MAKE COMICS.
There is no better way of learning the craft of product, or proving your potential to employers, than just doing it.
You do not need anybody's permission. We don't have diplomas, nor doctorates. We can barely agree on a single standard of what a Product Manager is supposed to do.
But – there is at least one blindingly obvious industry consensus – a Product Manager makes Products.
And they don't need to be kept at the exact right temperature, given endless resource, or carefully protected in order to do this.
They find their own way.
(1) Some haters of #Cardano are not only bag holders but also imperative developers.
If you are an imperative programmers you know that Plutus is not the most intuitive -> (https://t.co/m3fzq7rJYb)
It is, however, intuitive for people with IT financial background, e.g. banks
(2)
IELE + k framework will be a real game changer because there will be DSLs (Domain Specific Languages) in any programming language supported by K framework. The only issue is that we need to wait for all this
(3) Good news is that the moment we get IELE integrated into Cardano, we get some popular langs. To my knowledge we should get from day one: Solidity and Rust, maybe others as well?
List of langs: https://t.co/0uj1eBfrYj, some commits from many years ago..
@rv_inc ?
#Cardano
(a) Last but not least, marketing to people with Haskell, functional programming with experience and decision makers in banks is a tricky one, how do you market but not tell them you want to replace them. In the end one strategy is to pitch new markets, e.g. developing world
(b) As banks realize what is happening they maybe more inclined to join - not because they would like to but because they will have to - in such cases some development talent maybe re-routed to Plutus / Cardano / Algorand / Tezos
If you are an imperative programmers you know that Plutus is not the most intuitive -> (https://t.co/m3fzq7rJYb)
It is, however, intuitive for people with IT financial background, e.g. banks
(2)
IELE + k framework will be a real game changer because there will be DSLs (Domain Specific Languages) in any programming language supported by K framework. The only issue is that we need to wait for all this
(3) Good news is that the moment we get IELE integrated into Cardano, we get some popular langs. To my knowledge we should get from day one: Solidity and Rust, maybe others as well?
List of langs: https://t.co/0uj1eBfrYj, some commits from many years ago..
@rv_inc ?
#Cardano
(a) Last but not least, marketing to people with Haskell, functional programming with experience and decision makers in banks is a tricky one, how do you market but not tell them you want to replace them. In the end one strategy is to pitch new markets, e.g. developing world
(b) As banks realize what is happening they maybe more inclined to join - not because they would like to but because they will have to - in such cases some development talent maybe re-routed to Plutus / Cardano / Algorand / Tezos
The 12 most important pieces of information and concepts I wish I knew about equity, as a software engineer.
A thread.
1. Equity is something Big Tech and high-growth companies award to software engineers at all levels. The more senior you are, the bigger the ratio can be:
2. Vesting, cliffs, refreshers, and sign-on clawbacks.
If you get awarded equity, you'll want to understand vesting and cliffs. A 1-year cliff is pretty common in most places that award equity.
Read more in this blog post I wrote: https://t.co/WxQ9pQh2mY
3. Stock options / ESOPs.
The most common form of equity compensation at early-stage startups that are high-growth.
And there are *so* many pitfalls you'll want to be aware of. You need to do your research on this: I can't do justice in a tweet.
https://t.co/cudLn3ngqi
4. RSUs (Restricted Stock Units)
A common form of equity compensation for publicly traded companies and Big Tech. One of the easier types of equity to understand: https://t.co/a5xU1H9IHP
5. Double-trigger RSUs. Typically RSUs for pre-IPO companies. I got these at Uber.
6. ESPP: a (typically) amazing employee perk at publicly traded companies. There's always risk, but this plan can typically offer good upsides.
7. Phantom shares. An interesting setup similar to RSUs... but you don't own stocks. Not frequent, but e.g. Adyen goes with this plan.
A thread.
1. Equity is something Big Tech and high-growth companies award to software engineers at all levels. The more senior you are, the bigger the ratio can be:
2. Vesting, cliffs, refreshers, and sign-on clawbacks.
If you get awarded equity, you'll want to understand vesting and cliffs. A 1-year cliff is pretty common in most places that award equity.
Read more in this blog post I wrote: https://t.co/WxQ9pQh2mY
3. Stock options / ESOPs.
The most common form of equity compensation at early-stage startups that are high-growth.
And there are *so* many pitfalls you'll want to be aware of. You need to do your research on this: I can't do justice in a tweet.
https://t.co/cudLn3ngqi
4. RSUs (Restricted Stock Units)
A common form of equity compensation for publicly traded companies and Big Tech. One of the easier types of equity to understand: https://t.co/a5xU1H9IHP
5. Double-trigger RSUs. Typically RSUs for pre-IPO companies. I got these at Uber.
6. ESPP: a (typically) amazing employee perk at publicly traded companies. There's always risk, but this plan can typically offer good upsides.
7. Phantom shares. An interesting setup similar to RSUs... but you don't own stocks. Not frequent, but e.g. Adyen goes with this plan.
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IMPORTANCE, ADVANTAGES AND CHARACTERISTICS OF BHAGWAT PURAN
It was Ved Vyas who edited the eighteen thousand shlokas of Bhagwat. This book destroys all your sins. It has twelve parts which are like kalpvraksh.
In the first skandh, the importance of Vedvyas
and characters of Pandavas are described by the dialogues between Suutji and Shaunakji. Then there is the story of Parikshit.
Next there is a Brahm Narad dialogue describing the avtaar of Bhagwan. Then the characteristics of Puraan are mentioned.
It also discusses the evolution of universe.( https://t.co/2aK1AZSC79 )
Next is the portrayal of Vidur and his dialogue with Maitreyji. Then there is a mention of Creation of universe by Brahma and the preachings of Sankhya by Kapil Muni.
In the next section we find the portrayal of Sati, Dhruv, Pruthu, and the story of ancient King, Bahirshi.
In the next section we find the character of King Priyavrat and his sons, different types of loks in this universe, and description of Narak. ( https://t.co/gmDTkLktKS )
In the sixth part we find the portrayal of Ajaamil ( https://t.co/LdVSSNspa2 ), Daksh and the birth of Marudgans( https://t.co/tecNidVckj )
In the seventh section we find the story of Prahlad and the description of Varnashram dharma. This section is based on karma vaasna.
It was Ved Vyas who edited the eighteen thousand shlokas of Bhagwat. This book destroys all your sins. It has twelve parts which are like kalpvraksh.
In the first skandh, the importance of Vedvyas
and characters of Pandavas are described by the dialogues between Suutji and Shaunakji. Then there is the story of Parikshit.
Next there is a Brahm Narad dialogue describing the avtaar of Bhagwan. Then the characteristics of Puraan are mentioned.
It also discusses the evolution of universe.( https://t.co/2aK1AZSC79 )
Next is the portrayal of Vidur and his dialogue with Maitreyji. Then there is a mention of Creation of universe by Brahma and the preachings of Sankhya by Kapil Muni.
HOW LIFE EVOLVED IN THIS UNIVERSE AS PER OUR SCRIPTURES.
— Anshul Pandey (@Anshulspiritual) August 29, 2020
Well maximum of Living being are the Vansaj of Rishi Kashyap. I have tried to give stories from different-different Puran. So lets start.... pic.twitter.com/MrrTS4xORk
In the next section we find the portrayal of Sati, Dhruv, Pruthu, and the story of ancient King, Bahirshi.
In the next section we find the character of King Priyavrat and his sons, different types of loks in this universe, and description of Narak. ( https://t.co/gmDTkLktKS )
Thread on NARK(HELL) / \u0928\u0930\u094d\u0915
— Anshul Pandey (@Anshulspiritual) August 11, 2020
Well today i will take you to a journey where nobody wants to go i.e Nark. Hence beware of doing Adharma/Evil things. There are various mentions in Puranas about Nark, But my Thread is only as per Bhagwat puran(SS attached in below Thread)
1/8 pic.twitter.com/raHYWtB53Q
In the sixth part we find the portrayal of Ajaamil ( https://t.co/LdVSSNspa2 ), Daksh and the birth of Marudgans( https://t.co/tecNidVckj )
In the seventh section we find the story of Prahlad and the description of Varnashram dharma. This section is based on karma vaasna.
#THREAD
— Anshul Pandey (@Anshulspiritual) August 12, 2020
WHY PARENTS CHOOSE RELIGIOUS OR PARAMATMA'S NAMES FOR THEIR CHILDREN AND WHICH ARE THE EASIEST WAY TO WASH AWAY YOUR SINS.
Yesterday I had described the types of Naraka's and the Sin or Adharma for a person to be there.
1/8 pic.twitter.com/XjPB2hfnUC
