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.

‍

Get Smarter at Marketing
The Keyword weekly update → your inbox
Writer, The Keyword
Nelson Oboh
HOME PAGE
Amazon

‍

01
How can your services help improve my website's performance?
Our services enhance your website's performance by optimizing load times, improving user experience, and ensuring seamless functionality across all devices. We specialize in custom Webflow builds that are tailored to your specific needs, ensuring your site is both visually appealing and highly efficient.
02
What is the process for starting a project with your team?
Our process begins with an initial consultation to understand your goals and requirements. We then conduct a thorough analysis of your current setup, followed by a collaborative planning phase where we outline the project scope and timeline. Once the plan is approved, our team gets to work on designing and developing your custom Webflow solution.
03
How do you ensure the security of the websites you develop?
We ensure the security of the websites we develop by implementing robust security protocols, including SSL encryption, regular security audits, and secure coding practices. Our team stays updated with the latest security trends and threats to proactively protect your site from vulnerabilities.
04
What support do you offer after a project is completed?
After a project is completed, we offer comprehensive support to ensure your website continues to perform optimally. This includes regular maintenance checks, updates to keep your site secure and up-to-date, and troubleshooting any issues that may arise. Our team is always available to provide guidance and assistance as needed.
05
What is your approach to handling website redesigns?
Our approach to website redesigns involves a comprehensive analysis of your current site to identify areas for improvement. We prioritize user experience and performance, ensuring that the redesign aligns with your brand's goals and enhances functionality. By leveraging the capabilities of Webflow, we create visually stunning and efficient websites tailored to your specific needs.