Amazon’s ad revenue touches $17.3 billion in Q4FY24

Amazon earned $17.3 billion of revenue from advertising services in the fourth quarter and is growing 18% year over year revealed president and CEO Andy Jassy in the company’s earnings call.

Ad revenue includes sales to sellers, vendors, publishers, authors and others through programs such as sponsored ads, display and video advertising.

Overall Amazon’s net income increased to $20.0 billion in the fourth quarter compared with $10.6 billion from the same period in 2023. 

2024 was also the year when Amazon’s ad revenue crossed the $50 billion mark; Jassi said it is a $69 billion annual revenue run rate – a metric that estimates a company’s annual revenue based on its current revenues – it is more than double what it was just four years ago at $29 billion.

Sponsored products bring in the lion’s share of the company’s ad revenue. “We also have a number of newer streaming offerings that are starting to become significant new revenue sources.” It was the first year of Prime Video ads and Jassi says they’re pleased with its early performance. 

“We've made it easier to do full-funnel advertising with us,” remarks Jassy and went on to explain: 

Full funnel is from the top of the funnel with broad reach advertising that drives brand awareness to mid-funnel sponsored brands let companies specify certain keywords and audiences to attract people to their detailed pages or brand store on Amazon, to bottom of the funnel, where sponsored products help advertisers service relevant product ads to customers at the point of purchase.

We make this easy for brands to sign up for and deploy across our growing advertising. We also have differentiated audience features that leverage billions of customer signals across our stores and media destinations.