What Amazon Advertising does

Amazon Advertising is the advertising division of Amazon.com, Inc., operating as a full-funnel digital advertising platform serving businesses of all sizes, from individual sellers to global enterprise brands. The platform offers a portfolio that includes self-service solutions (Sponsored Products, Sponsored Brands, Display Ads, Online Video Ads, Streaming TV Ads, Audio Ads, and free Brand Stores) and programmatic offerings (Amazon DSP and Amazon Publisher Services), supported by a measurement suite comprising Amazon Marketing Cloud, Amazon Attribution, Amazon Brand Lift, Omnichannel Metrics, and Amazon Marketing Stream. The technology architecture leverages first-party shopping, streaming, and browsing signals from across Amazon's owned properties, including the Amazon Store, Prime Video, Twitch, Fire TV, and Alexa, enabling closed-loop attribution that connects ad exposure to verified purchase outcomes.

The business operates on multiple monetization mechanics: cost-per-click pricing for sponsored ads, cost-per-thousand viewable impressions and dynamic CPM auctions for display and video, and subscription-style managed-service contracts with $50,000 minimum spend for Amazon DSP and enterprise video. Revenue is generated across a hybrid go-to-market that combines product-led self-service (no minimum spend) for SMBs, direct enterprise field sales for managed-service accounts in 10 major markets, an agency partner directory, and server-to-server API integrations with third-party ad servers. The customer base spans Amazon sellers and vendors, non-Amazon advertisers seeking reach into Amazon audiences, challenger brands, agencies, and enterprise advertisers across consumer goods, beauty, automotive, technology, travel, and government verticals.

Amazon Advertising generated $56 billion in global ad revenue in 2024, growing 19.8% year-over-year, with Sponsored Products accounting for over 80% of revenue. Recent strategic moves include launching shoppable livestream commerce on Twitch, expanding into programmatic audio through an iHeartMedia partnership, integrating LinkedIn CTV into Amazon DSP, launching location-based interactive Prime Video ads, and introducing AWS RTB Fabric as ad-tech infrastructure. The division operates with 10,000+ employees, is headquartered in Seattle, and reports as a core business unit within publicly traded Amazon.com, Inc.

Name

Amazon Advertising

Legal name

Amazon.com, Inc.

Website

https://advertising.amazon.com

Company type

Public

Founded year

1994

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Amazon Advertising is the advertising division of Amazon.com, Inc., offering full-funnel digital ad solutions spanning sponsored products, display, video, streaming TV, audio, and programmatic DSP to businesses of all sizes globally.

Ownership category

akta.pro rank

Product category

Digital Advertising

NAICS

Media Buying Agencies (54183), Media Buying Agencies (541830), Advertising Agencies (54181)

SIC

Services-Advertising (7310), Services-Advertising Agencies (7311)

akta.pro primary industry

Marketplace & Retail Media Advertising (Amazon/Walmart/Instacart, etc.) (MPAAACAJ)

akta.pro secondary industries

Retail Media & Marketplace Advertising (Amazon/Walmart/Instacart, etc.) (BPAFACAD), Retail Media Networks & Commerce Advertising (BPAMALAL), Feed Management & Shopping Ads (PLA/Product Ads) (MPAAACAL), Performance Marketing Automation & Bid Management Services (MPAAACAM)

Keywords

• Digital advertising platform
• Programmatic ad buying
• Sponsored product ads
• Retail media network
• Streaming TV advertising

Headquarters

HQ city

Seattle

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Infrastructure, Personnel, Marketing or Sales, Operations

Revenue model

1. Sponsored Ads (CPC): Cost-per-click advertising including Sponsored Products and Sponsored Brands, where advertisers pay when shoppers click on their ads. No up-front fees, self-service model.
2. Display and Video Ads (CPM/CPC): Display advertising sold on cost-per-thousand viewable impressions (vCPM) and cost-per-click basis through Amazon Ads Console. Video ads sold programmatically through dynamic CPM real-time auctions.
3. Streaming TV Ads: Full-screen, non-skippable video ads appearing on Prime Video, Twitch, Fire TV, and third-party publishers. Premium inventory commanding higher rates due to engagement and brand safety.
4. Amazon DSP (Programmatic): Managed-service programmatic platform requiring minimum $50,000 spend, offering advanced targeting and reach across Amazon and third-party inventory.
5. Brand Stores: Free storefronts for brands on Amazon, monetized indirectly through increased purchase intent and brand loyalty among visitors.
6. Audio Ads: Audio advertising on Alexa, streaming music services, and podcasts with interactive capabilities including voice-activated actions.

Pricing tiers

Go-to-market motion4 records

Distribution channels5 records

Marketing channels6 records

Core offering

Amazon Advertising is a full-funnel digital advertising platform that lets businesses of all sizes run self-service sponsored ads (Sponsored Products, Sponsored Brands) and programmatic campaigns (Amazon DSP, Display, Streaming TV, Audio, Online Video) across Amazon-owned properties and third-party publishers. It monetizes through cost-per-click, cost-per-thousand impression, and managed-service advertising, supported by measurement tools (Amazon Marketing Cloud, Attribution, Brand Lift) and free Brand Stores.

Product overview

Amazon Advertising is a comprehensive full-funnel advertising platform offering solutions for businesses of all sizes across streaming, shopping, and digital channels. The portfolio includes self-service solutions (Sponsored Products, Sponsored Brands, Display Ads, Streaming TV Ads via Sponsored TV) and programmatic offerings (Amazon DSP, Amazon Publisher Services). Key measurement and analytics products include Amazon Marketing Cloud, Amazon Attribution, Amazon Brand Lift, Omnichannel Metrics, and Amazon Marketing Stream. The platform leverages Amazon's first-party shopping and streaming signals for audience targeting across Prime Video, Twitch, Fire TV, and third-party publishers. Amazon also offers video creative production services, an education platform (Amazon Ads Academy) with certifications, and partnerships with LinkedIn, iHeartMedia, Twitch, and various measurement providers like Kantar, Nielsen, and Samba TV.

Differentiator

Problem solved

Functional benefit

Products and services

• Sponsored Products Self-service cost-per-click advertising solution that helps customers find products on Amazon; appears in high-visibility placements across Amazon search results and product pages.
• Sponsored Brands

Quantifiable outcome

• 4.2x return on ad spend vs 2.8x for non-retail digital advertising
• +9 more outcomes

Named customers13 records

Segments6 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration10 records

AI capability15 records

Feature7 records

Partnerships

Ten partnerships are on record, tiered core and minor.

• iHeartMediacoreStrategic or Co-development Partner · 6 November 2025Amazon Ads and iHeartMedia expanded their partnership to launch a new programmatic audio advertising offering through Amazon DSP. The integration includes streaming music and live streaming radio access, with podcasts and radio stations expected in 2026. This allows advertisers to access iHeart's streaming audio portfolio programmatically.
• AdobecoreTechnology or Integration · 28 October 2025Adobe GenStudio announced expanded integrations with Amazon Ads, including deeper integration across ad and media platforms. Updates include AI-powered tools for brand-compliant content and proprietary AI model creation.
• AWScoreTechnology or Integration · 23 October 2025AWS introduced AWS RTB Fabric, a managed service for real-time bidding (RTB) advertising workloads, supporting demand-side and supply-side platforms and companies focused on fraud detection and brand safety.
• TwitchcoreStrategic or Co-development Partner · 16 October 2025Twitch launched livestream shopping powered by Amazon Advertising, with e.l.f. Cosmetics as the launch partner. The shoppable feature called eyes.lips.first enables viewers to purchase products directly during livestreams without leaving the platform. This represents Twitch's expansion into rapidly growing livestream e-commerce sector.
• LinkedIncoreTechnology or Integration · 1 January 2025LinkedIn CTV Ads are now available through Amazon DSP, enabling advertisers to reach professional audiences on connected TV environments using LinkedIn's audience data.
• AcadiacoreImplementation/ SI/ Consulting Partner · 1 January 2025Amazon Ads advanced partner Acadia helped challenger brand BODi achieve 8x category share growth and 78% new-to-brand share through strategic audience segmentation and full-funnel advertising. Winner of Amazon Ads Partner Awards Challenger Brand category.
• TinuitiminorImplementation/ SI/ Consulting Partner · 1 January 2025Agency partner that helped Blueair use Amazon Ads generative AI Audio generator solution for interactive audio ads on Alexa, achieving 45.3% new-to-brand detail page views.
• KiliagonminorImplementation/ SI/ Consulting Partner · 1 January 2024Partner agency that collaborated with Clementoni on Prime Video ads strategy that drove 70% increase in new-to-brand sales and 1.7x higher conversion rates.
• Goodway GroupminorImplementation/ SI/ Consulting Partner · 1 January 2023Agency partner that helped pro sports team client achieve 7x increase in impressions and 70% increase in clickthrough rate using Amazon display ads.
• Global OverviewminorImplementation/ SI/ Consulting Partner · 1 January 2023Agency partner that helped Thule drive more efficient traffic for their Urban Glide 2 stroller using display ads with video, achieving 299% increase in average monthly glance views.

Scale indicators10 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Criteo: Retail media and commerce media platform providing sponsored products, display retargeting, and audience solutions for retailers and brands. Competes with both Amazon DSP and Sponsored Products on off-site and on-site retail media placements.
• Roku Advertising: CTV-first advertising platform competing with Amazon's Streaming TV and Sponsored TV offerings for streaming ad budgets. Particularly competitive in non-Amazon Fire TV households.
• The Trade Desk: Independent demand-side platform competing directly with Amazon DSP for programmatic display, video, audio, and CTV budgets. Used by enterprise advertisers seeking an agency-friendly alternative to walled-garden DSPs.
• Kroger Precision Marketing: Kroger's retail media network offering sponsored products, display, and audience targeting on Kroger.com plus off-site programmatic. A direct retail media peer competing with Amazon Ads for grocery and CPG advertiser budgets.
• Target Roundel: Target's retail media network offering sponsored products, display, and off-site programmatic advertising. A direct retail media competitor to Amazon Ads, particularly for CPG and household-goods advertisers.
• Walmart Connect: Walmart's retail media advertising platform and the most direct competitor to Amazon Ads. Offers sponsored products, display, and programmatic capabilities on Walmart.com and across off-site inventory, targeting the same advertiser segments as Amazon Ads.

Broad incumbents

• TikTok Ads: Short-form video and shoppable advertising platform competing for both upper-funnel video budgets and lower-funnel performance spend, particularly with challenger brands and Gen Z audiences—a segment increasingly overlapping with Amazon's livestream ambitions.
• Meta Ads: Meta's advertising platform across Facebook, Instagram, WhatsApp, Messenger, and Reels. A primary competitor to Amazon Ads' social and video ad inventory, especially for challenger brand customer acquisition.
• Google Ads: Alphabet's advertising platform offering Search, Display, YouTube, and Performance Max. Competes with Amazon DSP and Sponsored Products for advertiser budgets, particularly in non-endemic categories and brand awareness.
• Microsoft Advertising: Bing Ads and Microsoft Audience Network competing with Amazon Ads in search, native, and connected TV (via Xbox and partner inventory). Relevant for enterprise advertisers seeking diversified spend across major platforms.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/amazonads
• YouTubeyoutube.com/amazonads
• Facebookfacebook.com/amazonads
• LinkedInlinkedin.com/company/amazon-ads
• Instagraminstagram.com/amazonads

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Amazon Advertising