Amazon’s advertising business revenue totalled $56.2 billion (£46.8 billion), exceeding $50 billion for the first time. This is an 18% increase, compared to 2023’s revenue of $46.9 billion (£37.7 billion).
The firm’s ad business also outpaced the company’s overall growth last year. Amazon CEO Andy Jassy informed investors during a recent earnings call that advertising growth corresponds to a $69 billion (£55.4 billion) run rate. This is an increase from the $29 billion (£23.3 billion) run rate recorded four years ago.
The conglomerate partially puts this down to its foray into streaming advertising. Amazon introduced adverts on its Prime Video content in many markets including the US, UK, Germany, Spain, Mexico and Australia.
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It also announced it would be introducing adverts on its Prime Video platform in additional countries in 2025. These include Japan, the Netherlands, Brazil, India, and New Zealand.
In the call, Jassy highlighted that Amazon has improved its mid-funnel advertising products. These allow advertisers to use keywords to target search ads.
According to Amazon, its Q4 ad revenue reached $17.29 billion (£13.8 billion). This figure was slightly below analyst estimates of $17.4 billion (£13.9 billion).
The firm’s advertising revenue is estimated to be approximately 9% of its total turnover, making it the third largest digital advertiser behind Alphabet and Meta, according to data from market research firm Emarketer.
