Amazon earned an advertising services revenue of $17.3 billion in the fourth quarter, growing at 18% year-over-year, said President and CEO Andy Jassy in the earnings call.
Advertising revenue comprises the sales to buyers, vendors, publishers, authors, and anyone else involved in areas such as sponsored advertising, display advertising, and video advertising.
Considering everything that happened in the quarter, the company finally made a net income of USD 20.0 billion last quarter, whereas in the same quarter in the year 2023, it compared an amount of USD 10.6 billion.
In the year 2024, the revenue from advertisements for Amazon also crossed the $50 billion mark. Jassi said this is a $69 billion annual revenue run rate, which means an estimate of a company's annual revenues based on current revenues more than double what was recorded four years ago at $29 billion.
Sponsored products bring in the lion’s share of the company’s ad revenue. “We also have a number of newer streaming offerings that are starting to become significant new revenue sources.” It was the first year of Prime Video ads and Jassi says they’re pleased with its early performance.
“We've made it easier to do full-funnel advertising with us,” Jassy remarked.
The full funnel encompasses the entire process, starting with top-of-funnel broad reach advertising that boosts brand awareness, moving to mid-funnel sponsored brands that allow companies to target specific keywords and audiences to drive traffic to their product pages or brand stores on Amazon, and ending with bottom-of-funnel sponsored products that deliver relevant ads to customers at the point of purchase.
We simplify the process for brands to sign up and launch campaigns across our expanding advertising network. Additionally, we offer unique audience features that utilize billions of customer signals from our stores and media platforms.
