In the high-stakes arena of digital advertising, Amazon continues to soar, leaving its major competitors, Google and Meta, trailing in its wake. 

The e-commerce giant reported a remarkable 26% growth rate in its advertising business, surpassing its own last quarter’s performance and dwarfing the growth of industry heavyweights Google (11%) and Meta (23%). 

In this feature, we will delve further into Amazon’s advertising triumph, exploring the factors that set it apart and the strategies that keep it ahead of the pack.

Amazon’s Unique Selling Points

Amazon’s CEO, Andy Jassy, attributes the company’s remarkable success in the digital advertising space to its unique abilities and offerings. Unlike its competitors, Amazon boasts a plethora of owned and operated properties with massive audiences that advertisers and brands are eager to tap into. 

This distinct advantage ensures a steady stream of advertising opportunities, even in uncertain economic times, as the world continues to shift towards e-commerce.

Moreover, Jassy pointed out that Amazon’s robust infrastructure and extensive customer data have allowed the company to provide highly targeted advertising solutions. This has been a game-changer for brands looking to maximise the impact of their ad spend.

Prime Time for Advertising: Thursday Night Football’s Impact

One standout example of Amazon’s advertising prowess is the remarkable performance of ‘Thursday Night Football’ on Prime Video. Ratings for the sports event have surged by a staggering 25% compared to a year ago. 

This surge in viewership has made Amazon an attractive platform for brands seeking to reach an engaged audience of approximately 13 million customers per week.

This impressive growth can be attributed to Amazon’s ability to seamlessly integrate advertising into its streaming content, providing a non-intrusive yet effective way for brands to connect with their target audience.

The Future of Prime Video Advertising

Amazon’s ambitions for Prime Video go beyond its current success. The company has previously announced plans to introduce limited ads on the platform starting in early 2024. 

What’s more, this strategic move could further accelerate Amazon’s ad growth. However, it’s worth noting that Amazon aims to maintain a balance by offering significantly fewer ads than traditional linear TV and other streaming providers, ensuring subscribers stay engaged in a crowded streaming landscape.

The introduction of limited ads is expected to create a new revenue stream for Amazon while providing advertisers with an exclusive platform to showcase their products and services to a highly engaged and affluent audience.

Navigating Pricing Challenges

While the introduction of Prime Video ads holds great promise, Amazon has encountered some resistance from media buyers regarding the initial pricing of its new ad tier. 

Therefore, negotiating this pricing challenge will be a crucial step in Amazon’s journey to dominate the digital advertising sphere.

Furthermore, Amazon is actively working with media buyers to find a pricing model that is mutually beneficial. The company understands the importance of striking the right balance between profitability and affordability to ensure long-term success in the advertising market.

The Power of Machine Learning

Amazon’s commitment to machine learning has been pivotal in enhancing the relevancy of its sponsored product ads. This innovation not only benefits advertisers but also positions Amazon as an attractive option for those seeking large ad volumes on a budget.

The company’s machine learning algorithms analyse customer behaviour and preferences to deliver highly personalised ad experiences. This not only increases the effectiveness of ads but also enhances the overall shopping experience for Amazon customers.

Expanding Horizons

Amazon believes that it has merely scratched the surface when it comes to integrating advertising into video, audio, and grocery. This vision hints at exciting opportunities for growth as the company continues to innovate and diversify its advertising portfolio.

What’s more, the company is actively exploring partnerships and acquisitions in these areas to further expand its advertising ecosystem. 

By leveraging its existing infrastructure and customer base, Amazon aims to create new avenues for advertisers to connect with their target audiences.

A Broader Advertising Ecosystem

In a surprising move, Amazon has also extended its reach by placing sponsored products on third-party sites, such as Pinterest, Hearst Newspapers, and Buzzfeed, with this strategic expansion aiming to provide advertisers with a broader canvas to reach their target audiences.

INterestingly, this initiative has been met with enthusiasm from both advertisers and third-party platforms, as it creates a win-win situation where brands gain access to new audiences, and third-party sites benefit from increased advertising revenue.

Unveiling New Advertising Products

At its annual UnBoxed conference, Amazon unveiled a range of cutting-edge advertising products. These include a new data clean room tailored to publishers and a generative artificial intelligence (AI) solution for enhancing campaign assets. 

Moreover, these innovations promise to revolutionise the advertising landscape and further solidify Amazon’s dominance.

The data clean room and AI solution are poised to set new industry standards for data privacy and ad creative optimisation. By providing advertisers with advanced tools, Amazon aims to empower them to create more effective and engaging ad campaigns.


In the fiercely competitive world of digital advertising, Amazon’s meteoric rise to a 26% growth rate showcases its unwavering commitment to innovation and customer engagement. 

CEO Andy Jassy’s vision, combined with strategic moves like limited Prime Video ads, machine learning enhancements, and expansion into third-party partnerships, are poised to keep Amazon at the forefront of the industry. 

As it continues to pioneer advertising in video, audio, and grocery, and unveils groundbreaking new products, Amazon’s ascendancy in the digital advertising realm appears unstoppable, cementing its status as a force to be reckoned with. 

With a commitment to adapting and evolving in response to market challenges, Amazon’s advertising empire is set to reach even greater heights in the years to come.