Amazon Q1 Ad Revenue Soars to $11.8 Billion, Driven by Prime Video’s Commercial Rollout

Amazon has reported a significant increase in ad revenue, reaching $11.82 billion in the first quarter of 2024. This figure marks a 24% year-over-year increase and sets a new Q1 record, surpassing analyst expectations of $11.7 billion.

The strong performance is primarily due to Amazon’s decision to integrate ads by default on Prime Video across multiple markets. The ecommerce giant’s advertising efforts have been bolstered by the growth of its Stores and Prime Video businesses, according to CEO Andy Jassy.

Jassy revealed in his annual letter to Amazon shareholders that Prime Video now boasts over 200 million monthly viewers. He also noted the recent introduction of advertising on the platform, which began on January 29. In the U.S. alone, Prime Video has reached an estimated 115 million monthly viewers.

Prime Video ads have been launched in nine countries, including the United States, the U.K., Germany, Austria, Canada, France, Italy, Spain, and Mexico. Jassy highlighted the rapid growth of streaming TV advertising and its promising start.

Prime Video continues to focus on exclusive content, with shows such as “Lord of the Rings,” “Reacher,” “The Boys,” “Citadel,” and upcoming titles like “Road House.” Additionally, Prime Video will stream its first NFL Wild Card playoff game in January 2025.

However, Amazon faces challenges. In February, a lawsuit was filed against the company, alleging false advertising and deceptive practices over Prime Video’s ad changes. Amazon has not commented on the lawsuit.

Despite these hurdles, Amazon posted overall strong Q1 results. The company reported revenue of $143.3 billion, up 13%, and net income of $10.4 billion, or 98 cents per share, exceeding Wall Street expectations of $142.5 billion in revenue and 83 cents per share earnings.