Amazon has reported strong advertising revenue for the fourth quarter of 2024, generating $17.3 billion in ad sales—an 18% year-over-year increase. While this growth remains strong, it fell short of Wall Street’s $17.4 billion estimate.

CEO Andy Jassy told investors during Amazon’s earnings call that the company remains satisfied with its ad business performance, which continues to expand despite its large scale. “We remain pleased” with the sustained double-digit growth, Jassy said.

Amazon’s ad business outpaces overall growth

Despite the increase, Amazon’s ad revenue growth rate has slowed compared to previous years. In Q4 2023, ad revenue rose 26% year-over-year, compared to this year’s 18% increase. However, its advertising surpassed Amazon’s overall business growth, which saw an 11% year-over-year increase in net sales.

Amazon’s advertising business now has a $69 billion run rate

During the earnings call, Jassy noted that Amazon's advertising growth translates to a $69 billion run rate—an estimate of annual revenue based on current performance. This is a significant jump from the $29 billion run rate four years ago.

The company has established itself as one of the largest digital advertising companies, ranking behind only Alphabet and Meta in the U.S. Its advertising platform includes video, display, and sponsored ads, which continue to attract brands seeking alternatives to traditional media.

Amazon’s streaming and sports advertising 

As part of its push into digital advertising, Amazon is increasing its focus on streaming TV ads. The company introduced ads on Prime Video in January 2024 priced at $8.99 per month. Users were also required to pay an additional $3 per month to watch ad-free content. Prime Video VP, Kelly Day, previously stated that more ads would be added to the platform this year.

Amazon is also growing its sports advertising business. The company reported an 11% increase in viewership for "Thursday Night Football" on Prime Video and Twitch in 2024, with an average of 13.2 million viewers per game. Additionally, Amazon has secured rights to stream a package of NBA games on Prime Video and Twitch as part of a $76 billion deal.

Amazon’s retail and ad strategy 

The e-commerce platform also continues to expand its retail offerings. The company held a record-breaking Black Friday and Cyber Monday deal event in 2024. It described it as its largest ever for independent sellers. Amazon was also named the lowest-priced U.S. retailer by Profitero for the eighth consecutive year, with prices averaging 14% lower than major competitors.

Overall, its total Q4 2024 revenue stood at $187.7 billion, exceeding Wall Street projections by approximately $400 million. The company reported a net income of $20 billion, nearly doubling the $10.6 billion reported in the same quarter last year. 

The company expects revenue to slow in Q1 2025, forecasting between $151 billion and $155 billion—below Wall Street estimates of $158 billion.

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