“`html
Amazon’s Advertising Growth
Amazon’s advertising revenue reached $56 billion in 2024, marking an 18% increase from the previous year, making it the third-largest digital advertising firm worldwide. The first quarter of 2025 showed further growth, with Amazon Ads generating $13.9 billion, also an 18% year-over-year increase, while total company revenue rose by just 9%. Marketing consultancy WARC projects Amazon’s retail media ad revenue could exceed $67 billion in 2025 and reach $79 billion by 2026.
Strategic Opportunities
Amazon Ads benefits from closed-loop attribution, allowing it to track customer experiences with ads, making its platform highly effective. The company is expanding beyond e-commerce, recently incorporating ads into Prime Video, which could yield $3.5 billion to $5 billion in ad revenue by 2025. Additionally, its Retail Ad Service initiative aims to develop its ad technology as a software-as-a-service for other retailers, further enhancing its advertising ecosystem.
“`
