Amazon Ad revenue to surpass USD 60bn in 2025, says WARC media

New Delhi: Amazon’s advertising business is growing steadily, even though it still accounts for a relatively small proportion of the company’s total earnings. Paid search formats, such as Sponsored Products, remain central to Amazon’s ad model, but the company is seeing increased investment in upper-funnel ad formats, including video and display ads on its own platforms.

According to a new Platform Insights report from WARC Media, Amazon’s retail media ad revenue is expected to exceed USD 60bn in 2025, not including advertising on properties such as Prime Video or Twitch. The report also estimates this figure will grow to USD 69.7bn by 2026.

“E-commerce giant Amazon offers more than retail media advertising—it’s quickly becoming a leading platform for full-funnel activation, with streaming TV and its own demand-side platform serving advertisers of all sizes,” said Alex Brownsell, Head of Content, WARC Media, and co-author of the report.

“This latest Platform Insights report provides evidence-based insights on the challenges and opportunities Amazon has to offer, and explores its advertising ecosystem, from ad revenue to user trends and marketer and consumer attitudes towards Amazon ads.”

Advertising growth outpaces overall company sales

While advertising makes up just 9.2% of Amazon’s total revenue, it continues to post strong year-on-year growth. WARC Media reports that ad revenue increased by 17.7% in the first quarter of 2025—faster than the global retail media market growth of 16%, and significantly ahead of Amazon’s overall sales growth of 8.6%.

Display ad revenue has also expanded rapidly, with data from Omdia indicating that Amazon has doubled its display ad revenue in four years. The company has attributed advertising as an “important contributor to profitability” in recent earnings calls, particularly in a period marked by economic pressures and global trade uncertainties.

WARC’s Marketer’s Toolkit 2025 survey shows that 56% of global marketers plan to increase their ad spend on Amazon—ranking behind only YouTube (64%) and TikTok (79%).

Expanding reach and inventory

Amazon’s advertising reach is bolstered by its growing visitor base. According to SimilarWeb, the platform receives 2.5 billion visitors each month, positioning it well ahead of newer rivals such as Temu and SHEIN. Brands can also use Amazon’s DSP to extend campaigns to third-party platforms like Meta, Snap, and Pinterest, while its network of premium publishing partners continues to grow.

On the streaming front, Amazon claims the third-largest share of streaming in the US via Prime Video, reaching over 200 million shoppers. However, subscription volatility remains a challenge for Prime Video, with Ampere research indicating high rates of user resubscription after cancellation. Advertisers are encouraged to understand audience overlap across services to identify unique reach opportunities.

Twitch, Amazon’s gaming and livestreaming platform, attracts over 105 million monthly users, primarily from Gen Z. The platform offers options for video ads, creator-led partnerships, and interactive content, often noted for its high user engagement.

Consumer perception and performance

Consumer trust in Amazon’s ads appears strong. Kantar’s Media Reactions study found Amazon ranks joint-first with TikTok as the most preferred platform for advertising, especially in terms of trust, quality, and usefulness. The platform also scored well on innovation and saw a decline in consumer concerns over over-targeting.

However, marketers were less favourable—Amazon did not rank in the top five preferred digital media platforms among global advertisers. The company is reportedly working to improve marketer perceptions through developments in AI, as well as expanded creative tools for ad formats including audio, video, and display.

Amazon’s internal brand lift studies suggest that campaigns using multiple formats or channels across its ecosystem perform better than those relying on single ad types.