Amazon’s Ad revenue surges 18% in Q4 2024, Growth rate slows

Amazon’s advertising business continued its strong momentum in Q4 2024, generating $17.29 billion in ad revenue, marking an 18% year-over-year increase. While the segment remains a key driver of Amazon’s overall earnings, the growth rate has decelerated compared to the 26% jump recorded in Q4 2023.

The Q4 figure slightly missed analyst expectations of $17.4 billion, according to StreetAccount. Despite this, Amazon’s earnings outperformed Wall Street forecasts. However, the company’s Q1 2025 guidance came in below analyst projections, raising concerns about potential headwinds in the coming months.

Amazon’s advertising revenue spans multiple formats, including video ads, sponsored placements, and display advertising across its e-commerce platform, streaming services, and third-party publisher network. A major recent shift came with Prime Video introducing ads by default in early 2024, significantly expanding Amazon’s ad inventory and positioning the platform as a stronger contender in the digital advertising space.

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