Yahoo Movies Amazon Advertising Revenue Surges in First Quarter Amid Prime Video Ad Expansion
The ads on Prime Video are working.
Amazon’s advertising business surged in the first quarter, growing by 24 percent year-over-year, benefitting from the decision to turn on ads for Prime Video users back in January (or letting users pay $3 per month to avoid them).
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Advertising revenue was $11.8 billion in Q1, compared to $9.5 billion a year earlier.
The bulk of Amazon’s ad business is still in its retail segment, but it has made a big bet on Prime Video, which has scale unmatched by any other streaming video platform except for YouTube. The decision to add ads to Prime Video is also one of the reasons behind Amazon’s decision to join TV’s upfront week this year, selling its video content to brand advertisers.
Prime Video has an NFL package in Thursday Night Football and is in the mix for a new NBA package. It also has a bona fide hit in Fallout, based on the popular video game franchise.
“Our Advertising efforts continue to benefit from the growth of our Stores and Prime Video businesses,” Amazon CEO Andy Jassy said in a statement.
Amazon’s net sales were $143.3 billion in the quarter, with net income of $10.4 billion.
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