Amazon‘s advertising Revenue Surges 24% to $17.7 Billion in Q3
SEATTLE – Amazon’s advertising business continued its rapid expansion in the third quarter of 2024, generating $17.7 billion in revenue – a 24% increase year-over-year, the company announced today. The growth underscores Amazon’s escalating position as a dominant force in the digital advertising landscape,fueled by partnerships with major players like Netflix,Spotify,and SiriusXM.
The advertising gains contributed to a strong overall earnings report for Amazon,which saw its shares jump as much as 14% in after-hours trading.The company highlighted new advertising deals signed in October,details of which have yet to be disclosed. This performance comes as Amazon navigates a broader shift in the e-commerce sector, anticipating the rise of “agentic commerce” – AI-powered shopping experiences designed to replicate the guidance of in-store sales associates.
Amazon CEO Andy Jassy emphasized the potential of artificial intelligence to drive further online shopping growth, stating, “AI and agentic commerce solutions are going to expand the amount of shopping that happens online… That’s really good for customers, and I think it’s really good for Amazon, because at the end of the day, you’re going to buy from the outfit that allows you to have the broadest selection, great value, and continues to deliver for you very quickly and reliably.”
The advertising revenue boost follows a $2.5 billion settlement Amazon reached with the Federal Trade Commission (FTC) this quarter, resolving allegations that the company misled consumers and made it difficult to cancel subscriptions. Meanwhile, Amazon’s cloud-computing division, AWS, experienced a 20% growth rate, returning to levels not seen since 2022, and continues to be a key area of investment for the company.
