Amazon advertising growth slows but still ahead of online retail

By AdNews | 1 November 2024
 
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Amazon advertising grew 19% to $US14.331 billion in the September quarter, representing slightly slower growth.

However, this was faster than the overall business at the giant online retailer which reported an 11% increase in net sales to $158.9 billion.

Amazon is still building its advertising on streaming platform Prime Video which started displaying ads in Australia in July.

Amazon Australia reported a 50% increase to $153.36 million in advertising sales in 2023, according to documents lodged with corporate regulator ASIC.

The company has been building generative AI-powered features, including video generation and live image capabilities for advertisers.

This makes it “fast and easy for brands to deliver compelling creative for customers through short, animated campaign images”.

Amazon has the third largest share of digital advertising revenue, after Google and Meta.

“As we get into the holiday season, we’re excited about what we have in store for customers,” said CEO Andy Jassy.

“We kicked off the holiday season with our biggest-ever Prime Big Deal Days and the launch of an all-new Kindle lineup that is significantly outperforming our expectations; and there’s so much more coming, from tens of millions of deals, to our NFL Black Friday game and Election Day coverage with Brian Williams on Prime Video, to over 100 new cloud infrastructure and AI capabilities that we’ll share at AWS re:Invent the week after Thanksgiving.”

Roy Morgan estimates 7.9 million Australians shop on Amazon.

Emarketer's digital advertising estimates:

 

digital advertising share table via emarketer supplied nov 2024

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