Amazon's ad revenue surges 18% YoY to $17.3 bn in Q4 2024

New Delhi: The e-commerce giant Amazon’s advertising services raked in $17.3 billion during the fourth quarter of 2024, marking an 18% increase from the same period in the previous year, announced the company President and CEO Andy Jassy during the earnings call.

The news comes as part of Amazon's Q4 earnings report, where the company also revealed a total revenue of $187.8 billion for the quarter, up 10% from the year before, with net income soaring to $20 billion, doubling from $10.6 billion in Q4 2023.

Amazon's advertising sector, which includes sales from sponsored ads, display, and video advertising across its vast network of sellers, vendors, publishers, and authors, has become a significant revenue driver for the company. 

The growth was fueled by a strong holiday quarter in retail, AI-driven gains at AWS, and a robust performance of ads on Prime Video, where Thursday Night Football averaged 13.7 million viewers.

Amazon has projected that ads will drive $69 billion in 2025.

“The holiday shopping season was the most successful yet for Amazon and we appreciate the support of our customers, selling partners, and employees who helped make it so,” said Jassy.

"We’ve completed our first year of Prime Video Ads and are pleased with the progress, entering this year with strong momentum," he said. "We've streamlined full-funnel advertising, offering broad-reach ads for brand awareness, mid-funnel responsive ads that target specific keywords and audiences, and bottom-funnel sponsored products that serve relevant ads at the point of purchase."

Meanwhile, Amazon's subscription services segment, which includes Prime memberships, digital video, audiobooks, music, e-books, and other non-AWS subscriptions, saw net sales rise 10% to $11.5 billion in Q4.

The company's net income doubled to $20 billion, up from $10.6 billion in the same period last year. For the full year, net income reached $59.2 billion in 2024, compared to $30.4 billion in 2023.

Operating income also saw a sharp rise, hitting $21.2 billion in Q4, up from $13.2 billion a year ago. For the full year, operating income surged to $68.6 billion, compared to $36.9 billion in 2023.