Amazon retail media ad revenue predicted to reach almost $60-billion

Amazon ads, also known as Amazon Sponsored Ads, are found within the Amazon marketplace and other websites where Amazon’s advertising network operates. They include Sponsored Products advertisements (common on search results), Sponsored Brands (including video ads), and Sponsored Display ads, which can be placed on third-party websites. 

Despite Chinese-based Temu and Shein having gained global attention, Amazon still dominates across markets for most visits. The e-commerce giant on average sees 2.5-billion visitors per month, the Warc report states. 

“While paid search formats such as Sponsored Products remain the core of Amazon’s advertising offering, the company has achieved incremental growth through upper-funnel ad spend, including via its Prime Video platform,” Warc says. “By the end of this year, Amazon will have doubled the size of its display ad revenue over the last four years.” 

First VOD player to achieve scaled mass reach 

Amazon also aims to be among the first video-on-demand (VOD) players to achieve scaled mass reach in advertising audiences; brands can reach over 200-million shoppers who watch Prime Video.  

Prime Video is a video subscription service that offers access to a wide range of movies and TV shows, including originals from Amazon. It allows subscribers to stream content on various devices, download for offline viewing, and watch in HD/UHD. 

Gaming content platform Twitch, acquired by Amazon more than a decade ago, now has over 105-million monthly users, heavily skewed to Gen Z. Advertisers use the platform to deploy video and display ads, streamer-driven activations and partnerships with creators. 

Amazon ranks joint first with TikTok as consumers’ most-favoured media platform for advertising, Warc says, referencing Kantar’s Media Reactions study.  

“Consumers were found to prefer Amazon ads over rivals for relevancy and usefulness, while Kantar also noted that concerns about over-targeting on the platform have been declining,” the report notes. 

Comments Alex Brownsell, Head of Content at WARC Media and co-author of the report: “E-commerce giant Amazon offers more than retail media advertising: it’s quickly becoming a leading platform for full-funnel activation, with streaming TV and its own Demand Side Platform serving advertisers of all sizes.”