The WARC Podcast Inside Amazon's $60bn advertising side-hustle
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May 22, 2025 Celeste Huang, a media insights analyst and lead editor on the Amazon report at WARC Media, shares insights on Amazon's surge as a top advertising platform. She discusses the shifting landscape of retail media and how Amazon's ad business projects to exceed $60 billion. The conversation digs into Prime Video and Twitch's pivotal roles in attracting younger audiences. Huang also highlights how Amazon's innovative ad strategies and AI tools are reshaping brand marketing, revealing the critical link between digital ads and Amazon sales.
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Amazon's Advertising Boom
- Amazon is now the third largest seller of advertising globally behind Alphabet and Meta, with ad revenues forecasted to exceed $60 billion in 2024.
- Advertising comprises under 10% of Amazon's total income but grows faster than overall revenue, contributing significantly to profitability amid economic challenges.
Shift to Display and Connected TV
- Amazon’s ad revenue is shifting from search to faster-growing display formats like video and audio.
- Connected TV ads, including Prime Video and Twitch, are forecasted to account for 10% of ad earnings by 2025, while off-site ad revenue is growing but still a small share.
Amazon's E-Commerce Dominance
- Amazon remains the dominant global e-commerce platform with an average of 2.5 billion visitors per month.
- Despite rising competition from Chinese retailers, Amazon's user visits and popularity remain large and stable worldwide.