Amazon’s advertising services generated $9.7 billion in revenue in the fourth quarter, a 32% year-on-year gain, according to an earnings release. This is the first time the company has broken out the specific financials of advertising sales, which used to be folded under its “other” segment, where they made up the lion’s share.
For the full year, Amazon saw about $31.15 billion in ad revenue. Much of that activity is directed at sponsored ad placements, where brands pay to have their products appear in desirable spots around Amazon’s e-commerce platform, including search results. But executives emphasized opportunities in video advertising on Fire TV, IMDb TV and Twitch, which are starting to add more premium programming for advertisers.
Longer-term, the e-commerce giant is trying to round out its tech stack and usability through offerings like its demand-side platform, Amazon DSP. Building out a robust and accessible advertising infrastructure will be important as traditional retail rivals ramp up their efforts to create similar networks.Marketing Dive