Brand Republic: Amazon says shift away from advertising boosted sales

Amazon's strategy of cutting their traditional media ad budget and using it to fund cheaper shipping appears to have paid off with sales up 37 percent in the second quarter.

Jeff Bezos put it this way: "In January, we shifted money from TV and print advertising to customers through lower prices and free shipping. We're pleased with the results."

Before anyone runs out into the streets crying "the end is nigh for adland" remember that Amazon has the worlds largest affiliate re-selling network, and has also spent a fortune in advertising in order to reach its current position of market dominance.