Amazon’s advertising revenue surged by 19% to reach £13.92 billion in the first quarter of 2025, marking a significant milestone that exceeded market expectations. This remarkable growth demonstrates Amazon’s increasing dominance in digital advertising, driven primarily by strong advertising demand across its Prime Video platform and e-commerce marketplace.

The impressive growth in advertising revenue outperformed Amazon’s overall sales increase of 9% during the same period, highlighting the growing significance of advertising in the company’s business model. The tech giant reported total quarterly sales of £155.67 billion, with advertising now contributing approximately 9% of total revenue.

Amazon’s advertising success stems from its extensive reach, particularly in the United States, where it boasts an average ad-supported audience exceeding 275 million viewers. The company’s strategic integration of advertisements into Prime Video has proven especially successful, with the streaming service now reaching more than 200 million monthly viewers globally.

The expansion of Amazon’s advertising portfolio includes sponsored product placements, display advertisements, and video commercials across its various platforms. Popular Prime Video content, including shows such as “Fallout” and “Road House,” has contributed significantly to increased ad visibility and engagement.

During the quarterly earnings call, Amazon CEO Andy Jassy expressed satisfaction with the company’s advertising performance, stating, “We are pleased with the strong growth on a very large base generating $13,900,000,000 of revenue in the quarter and growing 19% year over year.” This growth trajectory positions Amazon as a formidable competitor to established digital advertising giants like Meta and Google.

The e-commerce giant’s advertising success can be attributed to its comprehensive ecosystem, which enables advertisers to reach consumers throughout their shopping journey. The platform’s advertising solutions cater to various business needs, from sponsored listings for marketplace sellers to sophisticated video advertising campaigns for major brands.

Looking ahead, Amazon’s advertising division appears well-positioned for continued growth, supported by ongoing investments in artificial intelligence and the expansion of advertising offerings across its platforms. The company’s ability to leverage its vast customer data and diverse content ecosystem provides a strong foundation for future advertising innovation.

Despite potential challenges from economic uncertainties and market competition, Amazon’s advertising business demonstrates resilience and adaptability. The company’s focus on technological advancement and customer engagement suggests sustained growth in its advertising revenue stream for the foreseeable future.

Source: CNBC