Amazon‘s advertising Revenue Surgesโข 24% to $17.7 Billionโ in Q3
SEATTLE – Amazon’s advertising business continuedโ its rapid expansion in the third quarter of โค2024, generating โ$17.7 billion in revenue – a โข24% increase year-over-year, the company announced today. The growthโค underscores Amazon’s escalating position as aโค dominant force in โthe โdigital advertising landscape,fueled by partnerships withโ major players like Netflix,Spotify,and SiriusXM.
The advertising gains contributed to a strong โoverall earnings report โขfor Amazon,which โsaw its โคshares jump as muchโฃ as 14% โคin after-hours โขtrading.The company โhighlighted new advertising deals signed in October,details of which haveโฃ yet to be disclosed. This performance comes โคas Amazon โnavigates a โbroader shift in the e-commerce sector, anticipating โthe rise of “agentic commerce” – AI-powered shopping experiences designed to replicate the guidance of in-storeโ sales associates.โ
Amazon CEO Andy Jassy emphasized โthe potential of artificial intelligence to drive further online shopping โคgrowth, stating, “AI and โคagentic commerce solutionsโฃ are โgoing โto expand theโ amount ofโข shopping that happens onlineโฆ That’s really good โfor customers, and I think it’s really good for Amazon,โ because at theโ end of โthe day, you’reโ going to buy from the outfit that allows you to have theโ broadest selection, great value, and continues to deliverโ for you very quickly and reliably.”
The advertising revenueโ boost โfollows a $2.5 billion settlement โAmazonโข reached with the Federal Trade Commission (FTC) this quarter, resolving allegations that โthe โคcompanyโฃ misled consumers and made โขit difficult to cancel subscriptions. Meanwhile, Amazon’s cloud-computing division, AWS, experiencedโ a 20% growth rate, returning to levels notโค seen since 2022, and continues to be a key area of โฃinvestmentโ for โthe company.
