The news: Amazon’s ad business is now one of the company’s fastest-growing sectors. Ad revenues enjoyed a 26% increase in Q3, totaling more than $12 billion—double Amazon’s 13% overall revenue growth.
Growth sectors: Amazon’s strong advertising primarily comes from its dominance of the retail media market and new opportunities surrounding its purchase of Thursday Night Football (TNF) streaming rights in 2021.
A duopoly threat: With US ad growth set to outpace the ad duopoly, Google and Meta are paying special attention to Amazon.
Our take: Amazon’s retail media growth and investment into sports streaming are putting it neck-in-neck with digital advertising leaders and giving it a foothold for growth. With ads coming to Prime Video—a major driver of Prime subscriptions—and other ad initiatives in place, Amazon is well positioned to solidify its place as one of the world’s leading digital advertising firms.
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