Category: In the News

The Federal Trade Commission (FTC) and 22 state attorneys generals are suing Amazon alleging the company secretly overcharged advertisers in its search ad auctions for more than seven years. The suit was filed in the Western District of Washington.

Here’s what happened and why it matters. 

What did Amazon allegedly do?

Amazon told advertisers it was running a fair deal. Bid what you’re genuinely willing to pay, and you’ll only ever be charged one cent more than the next highest bidder. That’s called a second-price auction, and it’s the model most of the ad industry has used for years, because it means nobody has to bid cautiously or play games.

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OpenAI’s ads business is now running at a $1 billion annualised run rate, just six months after launch.

That figure comes from multiplying current monthly ad revenue by 12, so it’s a snapshot of where things stand today rather than money already booked over a full year. 

“We’re at the beginning of a new chapter for advertising, with AI creating entirely new ways for businesses and people to discover one another,” said Dave Dugan, vp of global ad solutions. “Reaching $1 billion in ARR in under 200 days shows the scale of the opportunity ahead.”

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