Amazon ad revenue jumps 19% to $13.92 billion

While the online ad division remains a smaller part of Amazon's overall revenue, it has rapidly grown to become the third-largest player in the global digital advertising arena, trailing only tech giants Alphabet and Meta.

By  Storyboard18May 2, 2025 9:16 AM
Amazon ad revenue jumps 19% to $13.92 billion
So far, tech companies with online ad businesses have generally reported robust first-quarter earnings. However, several have cautioned about potential headwinds later in the year, suggesting a cautious outlook for the advertising market.

Amazon has announced a stronger-than-expected performance in its online advertising business for the first quarter, reporting a 19% surge in revenue. Ad sales reached $13.92 billion, exceeding analysts' average forecast of $13.74 billion, according to StreetAccount.

These figures were revealed in Amazon's first-quarter earnings report, which also showed total sales hitting $155.67 billion, slightly above Wall Street's projections of $155.04 billion.

While the online ad division remains a smaller part of Amazon's overall revenue, it has rapidly grown to become the third-largest player in the global digital advertising arena, trailing only tech giants Alphabet and Meta.

The performance of online advertising is closely watched by investors amid economic uncertainties and escalating trade tensions between the U.S. and China. Analysts anticipate that while President Trump's tariffs on Chinese goods could negatively impact Amazon's core retail operations, the advertising unit might also experience some repercussions.

So far, tech companies with online ad businesses have generally reported robust first-quarter earnings. However, several have cautioned about potential headwinds later in the year, suggesting a cautious outlook for the advertising market.

First Published on May 2, 2025 9:16 AM

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