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Amazon’s advertising revenue is set to exceed $60bn in retail media alone this year, outpacing its overall growth, a WARC report has established. While paid search formats remain the core of Amazon’s ad offering, the company has achieved incremental growth through upper-funnel ad spend, it says.
Alex Brownsell, Head of Content, WARC Media, co-author of the report, says: “E-commerce giant Amazon offers more than retail media advertising—it's quickly becoming a leading platform for full-funnel activation, with streaming TV and its own demand-side platform serving advertisers of all sizes.
“This latest Platform Insights report provides evidence-based insights on the challenges and opportunities Amazon has to offer, and explores its advertising ecosystem, from ad revenue to user trends and marketer and consumer attitudes towards Amazon ads.”
According to the latest WARC Media forecasts, Amazon will earn $60.6bn in retail media ad revenue in 2025 not including spend with Amazon-owned properties such as Prime Video and Twitch – and is forecast to climb to $69.7bn in 2026.
WARC Media data shows that Alphabet, Amazon and Meta together accounted for over half (53.6%) of global ad spend, excluding China, in 2024 (up from 51.9% in 2023 and 49.7% in 2022).
Advertising revenue accounts for just 9.2% of Amazon’s total revenue, yet it continues to post significant double-digit year-on-year growth. It achieved +17.7% ad growth in Q1 2025, outpacing the +16% expansion forecast for the global retail media market, per WARC Media. This ad growth also surpassed its overall sales growth for all revenue (8.6%).
While paid search formats such as Sponsored Products remain the core of Amazon’s advertising offering, the company has achieved incremental growth through upper-funnel ad spend, including via its Prime Video platform. Using indexed growth data from Omdia, by the end of this year, Amazon will have doubled the size of its display ad revenue over the last four years.
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