Amazon’s Prime Video Surpasses $1.8B Ad Revenue Goal in Less Than a Year Since Launch
It’s prime time for ads, and for Amazon, the payoff is anything but small. Just nine months after introducing ads on Prime Video, the tech giant has exceeded its $1.8B target in ad-spending commitments. This figure represents the money advertisers have pledged for future ad slots, including revenue from live sports broadcasts like the NFL’s Thursday Night Football. By tapping into video ads, the online retail powerhouse is positioning itself to become a juggernaut in the advertising industry.
- Last year, Amazon brought in $47B in ad-based income, mostly from its e-commerce marketplace — and this year, it’s aiming for a 25% increase in ad-spending commitments.
- The tech conglomerate that dominates both the retail and cloud services sectors is also set to capture 13.8% of the US digital ad market by selling ad packages across Prime Video, Twitch, and Fire TV — with live sports ads sold separately.
Streaming ad wars heat up: In the upfront market, advertisers commit to buying TV and streaming ad spots in advance, usually for the next 12 months. To stay competitive, Amazon is leveraging its massive audience (115M monthly US viewers) to grow its presence in the streaming ad space. But with YouTube raking in $31B in ad revenue last year and Netflix ramping up its ad offerings, the race for streaming ad dollars is more fierce than ever.
