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Amazon Retail Media to Exceed $60 Billion in 2025

By Above Par's Marketing Team

Amazon’s retail media advertising revenue is set to reach a staggering $60.6 billion in 2025. This massive figure doesn’t even include ad spending on Amazon-owned platforms like Prime Video and Twitch. The e-commerce giant is rapidly transforming from an online marketplace into a complete marketing platform that influences how brands spend their advertising dollars and engage with customers.

Key Takeaways

  • Amazon’s advertising business is growing at 17.7% year-over-year, outpacing its overall sales growth of 8.6%
  • Prime Video has doubled its ad load since introducing advertising in 2024, now showing 4-6 minutes of ads per hour

Amazon’s ad business is booming. It’s growing faster than the company itself. While advertising makes up just 9.2% of Amazon’s total revenue, this segment is quickly becoming a profit powerhouse for the tech giant.

Beyond Just Product Listings

Amazon started with simple sponsored product listings. Now it’s so much more. The company has expanded into upper-funnel marketing—the kind that builds brand awareness before customers are ready to buy.

Prime Video is a big part of this strategy. With 200 million viewers worldwide, it’s a golden opportunity for advertisers. Think about it. Where else can you reach that many potential customers who are already in Amazon’s ecosystem?

The streaming service has quietly ramped up its advertising. Ads have doubled from 2-3.5 minutes to 4-6 minutes per hour. More ads mean more money for Amazon. Simple math.

“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,” says Alex Brownsell, Head of Content at WARC Media.

Unmatched Audience Reach

The numbers are mind-blowing. Amazon attracts approximately 2.5 billion monthly visitors globally. That’s billion with a “b.” Competitors like Temu and Shein don’t even come close.

This massive audience isn’t just shoppers. It includes Prime Video’s streaming viewers and Twitch’s 105 million users, many of whom are Gen Z. For advertisers, this means unprecedented access to diverse demographics all within Amazon’s walls.

Consumers trust Amazon ads too. They find them relevant and useful. That’s marketing gold.

What This Means For Marketers

The game is changing. Amazon isn’t just for bottom-of-funnel “buy now” ads anymore. It’s becoming a one-stop shop for the entire customer journey.

Marketers need to rethink their strategies. Amazon’s demand-side platform (DSP) now enables programmatic campaigns across external platforms like Meta, Pinterest, and Snap. All while using Amazon’s powerful first-party data.

Display advertising on Amazon is expected to double over the next four years. Video ads are commanding premium rates. The platform is like a freight train that keeps picking up speed.

By 2026, Amazon’s retail media ad revenue is forecast to climb to nearly $70 billion. That’s not just growth—it’s dominance in the making. For marketing professionals, the message is clear: ignore Amazon’s advertising ecosystem at your peril.

As Amazon continues to blur the lines between e-commerce, entertainment, and advertising, brands must adapt or risk being left behind in the digital dust.

Sources

WARC Media forecast (May 2025)

Amazon Quarterly Financial Reports (Q1 2025)

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