THE RAPID GROWTH OF AMAZON ADVERTISING: WHAT’S NEXT?
“When you change one thing, you have the ability to change EVERYTHING.”
GLOBAL GROWTH IN AMAZON ADVERTISING REVENUE: A SURGE IN EXPANSION
Amazon’s advertising revenue is set to soar, with global earnings expected to rise from $37.74 billion in 2022 to an impressive $94 billion by 2026. This continued growth is driven by Amazon’s expanding range of advertising formats and seamless integrations across its ecosystem. As Amazon’s ad revenue grows steadily each year, it signals a bright future for brands investing in this powerful platform.
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THE U.S. MARKET: DOMINATING AD SPEND GROWTH
AMAZON SEARCH ADS: A MAJOR CONTRIBUTOR TO U.S. AD REVENUE
Search ads are the driving force behind Amazon’s ad revenue, particularly in the U.S., where Amazon is rapidly gaining market share. In 2022, Amazon’s search ad revenue in the U.S. reached $19 billion and is projected to nearly double to $41 billion by 2026. With more consumers starting their product searches on Amazon, brands have a growing incentive to invest in search ads, solidifying Amazon’s leadership in the search advertising space.
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THE GROWING INFLUENCE OF AMAZON'S DIGITAL ECOSYSTEM
Amazon’s expanding digital ecosystem, which includes live sports, Prime Video, and Fire TV, enhances its vast reach and presents brands with diverse advertising opportunities.
- Live Sports: Amazon's digital sports audience is projected to grow to 127 million by 2028, reflecting the increasing demand for live sports within its ecosystem.
- Prime Video: Viewership of Prime Video’s ad-supported content will increase from 130 million in 2024 to 136.3 million by 2028.
- Fire TV: Fire TV’s user base is set to reach 121 million by 2028, capturing more than 34% of the U.S. population.
PRIME MEMBERSHIP GROWTH: BOOSTING ADVERTISING REACH
DIGITAL ADVERTISING TRENDS THROUGH 2028
Amazon’s growth in the ad space mirrors broader digital advertising trends, with digital ad spending projected to rise at a 10.6% CAGR through 2028. As traditional search advertising plateaus, brands are increasingly shifting ad dollars toward retail media and social platforms.
2024: Digital ad spending estimated at $302 billion
2028: Digital ad spending expected to reach $452 billion
With traditional search ad growth stabilizing, digital ad spending is expected to be driven by video, retail media, and social platforms—sectors where Amazon has strategically positioned itself for growth.
THE GROWTH OF RETAIL MEDIA AND THE SHIFT FROM SOCIAL
Retail media, encompassing in-app and in-store ads, is expected to grow at a 24% CAGR, surpassing social media ad spend by 2028. This segment is forecast to increase by $74 billion in just four years as brands realize the power of reaching customers at the point of purchase.
By 2028, retail media will be one of the largest digital ad categories. As the largest retail media platform, Amazon is in a prime position to capture this growth, further consolidating its dominance in the ad industry.
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