Amazon's ad revenue set to exceed $60 billion, expanding beyond search: WARC
Amazon
's advertising business is on track to surpass USD 60 billion in
retail media ad revenue
this year, according to WARC Media's latest "Platform Insights: Amazon" report. This growth indicates Amazon's expanding role as a platform for
full-funnel marketing activation
, moving beyond its core paid search formats.
Despite its significant ad revenue, advertising currently accounts for only 9.2 per cent of Amazon's total revenue. However, its ad growth rate, which was 17.7 per cent in Q1 2025, is outpacing its overall sales growth. This suggests that advertising is becoming an increasingly important contributor to Amazon's profitability.
"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," stated Alex Brownsell, head of content, WARC Media, and co-author of the report.
While paid search formats like sponsored products remain central to Amazon's ad offerings, the company has seen incremental growth through upper-funnel ad spend, notably via its Prime Video platform. Display ad revenue is projected to double over the last four years by the end of 2025. This expansion allows brands to reach over 200 million shoppers who watch Prime Video, offering new formats and vast first-party data signals.
Amazon's reach extends beyond its e-commerce platform, with an average of 2.5 billion visitors per month globally. The company is also leveraging its demand-side platform (DSP) to allow brands to extend campaigns to other social platforms, including Meta, Pinterest and Snap, and is actively expanding its network of premium publishing partners for off-site growth.
Consumer sentiment towards Amazon ads appears positive. According to Kantar's Media Reactions study, Amazon ranks highly as a preferred media platform for advertising, with consumers favoring its ads for relevancy, usefulness, trustworthiness, and innovation. This suggests a strong foundation for advertiser engagement.
However, global marketers have not yet ranked Amazon among their top-five preferred digital media brands. Amazon aims to address this perception through continued AI innovation and advanced creative tools across its display, audio, and video ad formats. The company's internal meta-analysis of brand lift suggests that multi-channel or multi-format campaigns within the Amazon ecosystem drive better brand lift for advertisers.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
a minute ago
- Indian Express
US proposes new drone rules that could lead to Starbucks, Amazon deliveries
The US Transportation Department is proposing new rules to speed deployment of drones beyond the visual line of sight of operators, a key change needed to advance commercial uses like package deliveries. 'We are going to unleash American drone dominance,' Transportation Secretary Sean Duffy said at a press conference on Tuesday. Under current rules, operators need to get individual waivers or exemptions to use drones without visual line of sight. The department said eliminating those requirements 'will significantly expand the use-case for drone technologies in areas like: manufacturing, farming, energy production, filmmaking, and the movement of products including lifesaving medications.' The proposal includes new requirements for manufacturers, operators, and drone traffic-management services to keep drones safely separated from other drones and airplanes. 'It's going to change the way that people and products move throughout our airspace… so you may change the way you get your Amazon package, you may get a Starbucks cup of coffee from a drone,' Duffy said. 'Industry needs this rule to make sure they can use this technology that's going to allow them to do business more efficiently and effectively.' Amazon resumed testing drone deliveries earlier this year at two locations in Texas and Arizona. Amazon has a goal of delivering 500 million packages annually by drone by the end of 2030. Under the proposal, operations would occur at or below 400 feet above ground from pre-designated locations approved by the Federal Aviation Administration. Operators would identify boundaries and approximate daily flights and takeoff, landing and loading areas and ensure procedures if communications with drones are lost. Drones would yield to all manned aircraft broadcasting their position and not interfere with operations at airports. The Transportation Security Administration would require flight coordinators and others to obtain security threat assessments and a fingerprint-based criminal history records check. Lawmakers and many state officials have raised concerns about drones being used to target high-profile US events like the FIFA World Cup. Association for Uncrewed Vehicle Systems International CEO Michael Robbins praised the risk-based proposal as 'a critical step toward enabling drone operations that will enhance safety, transform commercial services, and strengthen public safety with drones as a force multiplier.
&w=3840&q=100)
Business Standard
a minute ago
- Business Standard
US rejects India's WTO tariff talks request on steel, aluminium: Govt
The US did not accept India's request for consultations under an agreement of the World Trade Organisation (WTO) concerning American tariffs on steel, aluminium, and related derivative products, Parliament was informed on Tuesday. The US has maintained that these measures were introduced on the grounds of national security, Minister of State for Commerce and Industry Jitin Prasada said in a written reply to the Lok Sabha. India, however, considers these measures to be safeguard actions that should have been notified and subjected to consultations under the WTO's Agreement on Safeguards (AoS). "India has accordingly reserved its right to suspend substantially equivalent concessions (right to impose equal trade measures in response) due to the US's non-compliance with its obligations under the AoS," he said. In a separate reply, the minister said India is actively involved in the discussions with the US on the Bilateral Trade Agreement (BTA) with the aim to expand trade and investment. India-US bilateral trade agreement negotiations were launched in March 2025. Five rounds of negotiations have been held, the last being from July 14-18th, 2025, at Washington, USA. "To safeguard the interests of farmers and the domestic industry, international trade negotiations allow for the inclusion of sensitive, negative, or exclusion lists -- categories of goods on which limited or no tariff concessions are granted," he said. In addition, in case of surge in imports and injury to the domestic industry, a country is allowed to take recourse to trade remedial measures such as anti-dumping and safeguards on imports. In another reply, the minister said India has not taken any decision to suspend or restrict trade or tourism activities with Turkey and Azerbaijan. However, the import from Turkey has declined from USD 3.78 billion in 2023-24 to USD 2.99 billion in 2024-25. The major items imported from Turkey during 2024-25 include Petroleum Crude, Gold, Inorganic Chemicals, Granite, Natural Stones and Aircraft & Spacecraft parts. The major items of import from Azerbaijan during 2024-25 include Finished Leather, Medical and Scientific Instruments, Raw Hides and Skins, Fruits/Vegetables Seeds and Hand Tools, Cutting Tools of Metals.
Time of India
15 minutes ago
- Time of India
Amazon announces first-ever availability of OpenAI models for its cloud customers, company says, ‘The addition of...'
Amazon Web Services (AWS) has announced that OpenAI's open weight models will be available for the first time on Amazon Bedrock and Amazon SageMaker AI. This will allow the company's customers to build generative artificial intelligence (AI) apps, as this move will make OpenAI's technology accessible to millions of AWS customers. In a blog post, Amazon has confirmed that OpenAI's two new open-weight foundation models, gpt-oss-120b and gpt-oss-20b, will be offered on its platforms. According to AWS, when running in Amazon Bedrock, the larger model is three times more price-efficient than the comparable Gemini model, five times more than DeepSeek-R1, and twice as efficient as the OpenAI o4 model. This announcement reinforces AWS's commitment to providing a wide selection of models. It expands the existing range of fully managed models in Amazon Bedrock and makes them accessible in Amazon SageMaker JumpStart. What Amazon and OpenAI said about this collaboration Commenting on the latest partnership, Atul Deo, director of product at AWS, said: 'Open weight models are an important area of innovation in the future development of generative AI technology, which is why we have invested in making AWS the best place to run them, including those launching today from OpenAI. The addition of OpenAI as our newest open weight model provider marks a natural progression in our commitment to bringing cutting-edge AI to organisations worldwide, and the unmatched size of our customer base marks a transformative shift in access to OpenAI's advanced technology.' Meanwhile, Dmitry Pimenov, product lead, OpenAI, noted: 'Our open weight models help developers—from solo builders to large enterprise teams—unlock new possibilities across industries and use cases. Together with AWS, we're providing powerful, flexible tools that make it easier than ever for customers to build, innovate, and scale.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Use an AI Writing Tool That Actually Understands Your Voice Grammarly Install Now Undo Why Amazon wants to use OpenAI's open weight models Amazon is integrating OpenAI's open weight models due to their strong reasoning abilities, which are well-suited for building AI agents—an area that's reshaping how businesses operate. Through Amazon Bedrock AgentCore, companies can run these models natively at scale and with the security needed for production-level applications. They can also gain access to features like gpt-oss-120b and gpt-oss-20b, which can be integrated with Bedrock's enterprise-grade safeguards, including Guardrails that filter out up to 88% of unsafe content. Upcoming features like Custom Model Import, Knowledge Bases, and additional customisation will further enhance this integration. Meanwhile, Amazon SageMaker AI enables customers to use these open weight models with tools for pre-training, evaluation, fine-tuning, and deployment, offering a full-stack solution for developing advanced AI systems. OpenAI's open weight models are well-suited for agentic AI use cases due to their strong reasoning capabilities, have an efficient size-to-performance ratio and support instruction-following and tool use. With a 128K context window, they can handle long documents and conversations, making them ideal for tasks like coding, scientific research, and customer service. These models also include safety measures, having undergone thorough training and evaluation to support responsible AI deployment. iOS 26 Public Beta Is Here: Apple's Biggest Redesign Since iOS 7
