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Amazon's retail media ad revenue to exceed $60.6 billion in 2025: WARC Media
This figure, excluding Amazon-owned platforms like Prime Video and Twitch, is expected to climb further to $69.7 billion by 2026.
Despite ad revenue constituting just 9.2% of Amazon’s total income, the company posted a robust 17.7% growth in Q1 2025, outpacing both the global retail media market forecast (+16%) and its own overall sales growth (+8.6%).
Amazon's advertising division is experiencing explosive growth, with retail media ad revenue forecast to surpass $60.6 billion in 2025, according to WARC Media’s latest Platform Insights report. This figure, excluding Amazon-owned platforms like Prime Video and Twitch, is expected to climb further to $69.7 billion by 2026.
Despite ad revenue constituting just 9.2% of Amazon’s total income, the company posted a robust 17.7% growth in Q1 2025, outpacing both the global retail media market forecast (+16%) and its own overall sales growth (+8.6%).
Alex Brownsell, Head of Content at WARC Media, highlighted Amazon's evolving role, stating, “E-commerce giant Amazon offers more than retail media advertising—it’s quickly becoming a leading platform for full-funnel activation, with streaming TV and its own demand-side platform serving advertisers of all sizes.” The report delves into the platform's ecosystem, from revenue to user trends and marketer/consumer attitudes.
Paid search formats like Sponsored Products remain foundational, but upper-funnel investments, notably through Prime Video, are driving incremental gains. Display ad revenue is projected to double over four years, per Omdia data.
Amazon's extensive reach, with 2.5 billion global monthly visitors, underpins its ad appeal. Over 200 million Prime Video shoppers and Twitch’s 105 million largely Gen Z monthly users offer diverse audiences and valuable first-party data. The company also expands programmatic reach via its DSP, facilitating campaigns across platforms like Meta, Pinterest, and Snap, while continually adding premium publishing partners.
Marketer sentiment is strong, with 56% of global marketing leaders planning to increase Amazon ad spend, trailing only YouTube and TikTok. Consumers consistently rate Amazon ads highly for trust and quality, even leading for relevancy, usefulness, and innovation in Kantar’s Media Reactions study, with concerns over over-targeting reportedly declining.
Despite positive consumer perception, Amazon wasn't among marketers' top five preferred platforms. The company is addressing this by investing in AI-powered tools and expanding creative capabilities across display, audio, and video. A meta-analysis indicates that multi-format campaigns within its ecosystem consistently deliver stronger brand lift, solidifying its push as a comprehensive full-funnel ad platform.
SPOTLIGHT
At the Storyboard18 DNPA Conclave 2025, Union Minister Ashwini Vaishnaw spotlighted the critical role of traditional media in an evolving digital landscape. He emphasized that such gatherings can aid the govt in formulating more effective policies for a balanced and sustainable media ecosystem.
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