Amazon’s advertising services brought in $56.2bn of revenue to the business in 2024, which equates to approximately 5% of global ad spend, if GroupM’s $1tn estimate is correct.
The ecommerce company posted strong results in its Q4 2024 financial report on 6 February. Net sales rose 11% for the full year, to $638.0 billion, while net income almost doubled to reach $59.2bn.
Speaking to analysts on an earnings call yesterday, Amazon’s president and CEO, Andy Jassy, said he was pleased with the strong growth of its advertising business, which brought in $17.3bn of revenue in the fourth quarter, up 18% year on year.
‘That’s a $69 billion annual revenue run rate,’ said Jassy, ‘more than double what it was just four years ago at $29 billion.
‘Sponsored products, the largest portion of ad revenue, are doing well and we see runway for even more growth. We also have a number of newer streaming offerings that are starting to become significant new revenue sources. On the streaming video side, we wrapped up our first year of Prime Video ads, and we’re quite pleased with the early progress.’
Jassy also said that Amazon had made it easier for brands to do full-funnel advertising on the platform, and boasted about the capability of its new multi-touch attribution model.
‘If an advertiser uses streaming TV, display, sponsored products, and other ad types in their campaign,’ said Jassy, ‘multi-touch attribution will show the relative contribution of each to their sales.’
Main image: Andrew Stickelman on Unsplash
