Amazon’s ad revenue rose by 24% year over year, totaling $17.7 billion in Q3. This surpassed analyst expectations and highlights the growth of digital advertising platforms, despite economic challenges.
Amazon’s Growing Ad Revenue
The company’s advertising revenue has become a crucial profit source, supported by ongoing demand. Following this positive trend, Amazon’s stock value increased.
Recent investments focused on artificial intelligence (AI) are enhancing Amazon’s ad infrastructure. The company raised its expected capital expenditures for 2025 to $125 billion, up from $118 billion, signaling a push toward AI development.
Demand-Side Platform (DSP) Enhancements
Amazon’s CEO Andy Jassy noted significant momentum for their demand-side platform, which now supports services like Roku, Netflix, Spotify, and SiriusXM. Jassy asserted that the DSP has evolved into a fully featured offering by addressing prior gaps.
Amazon’s live sports content, including NBA and NFL games on Prime Video, has attracted increased advertiser interest, contributing to positive upfront commitments for ad spending.
Impact of AI on User Engagement
Amazon’s AI shopping assistant, Rufus, engaged 250 million users in Q3, with interactions increasing by 210%. The tool significantly boosts purchase likelihood among users.
Jassy expressed intentions to collaborate with third-party agents over time, likening it to the early days of search engines as a commerce discovery tool.
Why is Amazon’s ad revenue increasing?
Strong demand for digital advertising is driving growth.
How is AI being integrated into Amazon’s services?
AI enhances ad infrastructure and user tools like Rufus.
What are Amazon’s future spending plans?
Amazon plans to increase capital expenditures further in 2026.
