Amazon is set to become a major force in the advertising world, with projected ad revenue of over $60 billion by 2025. This growth is not just about Amazon being a giant in e-commerce, but also about its role as a key platform for advertisers.
Amazon’s ad offerings have seen significant growth, especially in display ads, which have doubled in the last four years. The company’s Prime Video and Twitch platforms have been major contributors to this growth. Prime Video has over 200 million viewers, making it an attractive platform for advertisers. Twitch, with over 105 million monthly users, mostly from Gen Z, is also becoming a key component for advertisers.
What sets Amazon apart is its ability to offer a range of ad formats, from sponsored products to video and display ads. According to a study by Kantar, Amazon is the most favored media platform for advertising, along with TikTok. The study found that Amazon’s ads are seen as relevant and useful by consumers.
Experts believe that Amazon’s strength lies in its ability to offer multichannel and multiformat campaigns, which can drive better brand recognition for advertisers. As Alex Brownsell, head of content at WARC Media, notes, “Amazon offers more than just retail media advertising – it’s becoming a leading platform for full-funnel activation, with TV streaming and its own demand-side platform for advertisers of all sizes.”
Some key statistics that highlight Amazon’s growth in the advertising space include:
- Over $60 billion in projected ad revenue by 2025
- 2.5 billion monthly visitors to Amazon’s platform
- 200 million viewers on Prime Video
- 105 million monthly users on Twitch, mostly from Gen Z
As the advertising landscape continues to evolve, Amazon is well-positioned to become a major player, offering a range of ad formats and a large audience reach. Its ability to innovate and offer new technologies, such as AI-powered ad tools, will be key to its success in the advertising space.