Amazon's recent deals with Roku and Disney have propelled a 22% increase in advertisement revenue for the company
Amazon, the global e-commerce giant, is making waves in the digital advertising landscape with its strategic moves and technological advancements.
The company's scalable infrastructure provided by Amazon Web Services is being utilised for the analysis of user data, offering insights that are fuelling its growth in the ad sector.
One of the key factors contributing to Amazon's success is the improvement in its demand-side platform, making it more competitive, as stated by Wedbush analyst Scott Devitt.
Amazon's push into perishables and everyday essentials has led to a wealth of behavioral signals, enhancing the precision of ad targeting.
Strategic partnerships have played a significant role in Amazon's digital advertising journey. The alliance with Roku, for instance, has unlocked access to 80 million authenticated household screens, significantly increasing Amazon’s addressable connected-TV (CTV) audience. On the other hand, the integration with Disney's Real-Time Ad Exchange provides access to high-quality, premium inventory across Disney+, ESPN, and Hulu.
These partnerships have bolstered Amazon’s DSP capabilities, enabling advanced targeting and real-time budget allocation, improving ad efficiency and return on investment. As a result, Amazon experienced a 22% surge in ad revenue, reaching $15.7 billion.
The Roku partnership has created the largest authenticated CTV footprint, making Amazon a formidable contender in the competition for streaming viewership and ad dollars in the living room space. The Disney integration, meanwhile, has given Amazon direct entry into premium streaming content, further attracting brands seeking engaged audiences.
Together, these deals form part of Amazon’s broader strategy of expanding its full-funnel retail media offering by seamlessly integrating AI-powered bidding across search, display, video, and CTV. This not only increases Amazon’s advertising reach but also boosts consumer confidence, enabling steady growth in net sales.
Brands that leverage the precision of retail signals, the reach of Roku, and the premium context of Disney+ will capture a greater share of consumer attention and sales. The path to performance increasingly runs through Amazon's CTV and DSP platforms, posing a significant challenge to industry giants like Google and Meta.
In 2024, 75% of perishables purchasers on Amazon were first-time shoppers, and 20% reordered within a month, indicating a promising future for Amazon's retail-media transformation, which has evolved into a comprehensive suite that includes sponsored display, video, and CTV placements.
[1] Source: CNBC, Ad Age, and Marketing Land articles on Amazon's digital advertising growth. [3] Source: Amazon's Q4 2021 earnings report.
Amazon's investment in technology through Amazon Web Services and partnerships with Roku and Disney are reshaping its business model, bringing advancements in ad targeting and DSP capabilities. This is creating a new landscape in the competition for streaming viewership, ad dollars, and consumer attention, potentially challenging industry giants like Google and Meta in the realm of performance marketing. In the future, Amazon's focus on AI-powered retail media, including sponsored display, video, and CTV placements, could cater to a growing number of first-time shoppers and repeat customers in the perishables sector. [Source: CNBC, Ad Age, and Marketing Land articles on Amazon's digital advertising growth; Amazon's Q4 2021 earnings report]
