Amazon‘s ad unit keeps surging. That business grew to $11.8 billion in the first quarter of 2024, representing 8% of its total revenue. Amazon reported net sales of $143.3 billion, up 13% compared to the same three-month period last year. (ADWEEK)
“Our advertising efforts continue to benefit from the growth of our Stores and Prime Video businesses,” CEO Andy Jassy said in announcing earnings. On the earnings call, he told investors, “It’s very early for streaming TV ads, but we’re encouraged by the response.” (Variety)
The bulk of Amazon’s ad business is still in its retail segment, but it has made a big bet on Prime Video, which has scale unmatched by any other streaming video platform except for YouTube. The decision to add ads to Prime Video is also one of the reasons behind Amazon’s decision to join TV’s upfront week this year, selling its video content to brand advertisers. (THR)
