The Amplitude cloud provider is the beneficiary of the rejection of cookies
The provider of data analysis software Amplitude Inc. (AMPL) may become a beneficiary of the refusal of advertising providers from cookies. In addition, major companies such as Google and Apple announced the intention to refuse cookies.
The companies explain their decision because most Internet users prefer not to. The rejection of cookies will completely change how the global digital advertising industry works. Most likely, Amplitude will be among the beneficiaries of these transformations. Amplitude produces cloud-based software focused on digital optimization, that is, on using enterprises’ data to improve the implementation of its products.
Amplitude and the approach of traditional analysis platforms such as Adobe Analytics and Google Analytics are that Amplitude Inc. focuses on products rather than marketing.
According to the company’s management, their solution, which deals with digital optimization, allows you to analyze how customers use the product and use this data to improve the product. Thus, when a business starts to refuse cookies en masse, Amplitude will have the opportunity to expand its software sales.
Stopping third-party cookies will potentially free up billions of dollars in costs that redirect to optimization solutions. At the same time, Amplitude believes that industries such as retail and insurance are ripe for the transition from pure marketing to product promotion. Amplitude is unique as the only company offering pure software as a service optimization and analysis, an industry just beginning to take shape. Three quarters of 2021, revenue increased by 63% to $117.8 million.
The company’s future growth will be primarily associated with the speed of reorientation of the market to new technologies in product promotion. Recall that Amplitude went public at the end of September 2021. Initially, the stock rose, but the quotes declined sharply due to a broader stock sell-off.
