Amazon Australia reported a 50% increase to $153.36 million in advertising sales in 2023, according to documents lodged with corporate regulator ASIC.
The proportion of revenue from advertising in Australia is still small compared to total local Australian net sales of $3.1 billion by the giant online retailer.
But the local Australian advertising sales outstrip the global growth rate at Amazon.
Amazon’s advertising business, now the third largest in the world after Google and Meta, grew 27% to $US14.65 billion in the December quarter.
Amazon’s Prime Video will start displaying commercials in Australia later this year, adding to local advertising sales.
The first standalone live sports channel for Amazon Prime Video in Australia went live in January, with the streaming service partnering with sports media company beIN SPORTS.
The move comes just over a month after Prime Video closed a four-year deal for exclusive live broadcast rights in Australia for ICC cricket.
Amazon aims to have fewer ads than linear TV and other streaming content platforms. It hasn’t defined this.
Those who want an ad free experience will have to pay a bit more.
Amazon has launched a series of advertising tools to help brands connect with customers:
- A generative AI solution to help brands produce lifestyle imagery that can improve the performance of their ads while also making them more engaging.
- A sponsored TV offering to enable brands that sell in Amazon’s US store to run streaming TV ad campaigns with no minimum spend on Amazon Freevee, Twitch, and third-party streaming services through Fire TV apps.
- Fifteen new advertising capabilities, including enhanced audience insights and advanced campaign planning, activation, and optimisation controls that help advertisers more efficiently reach relevant audiences and drive meaningful business outcomes.
- Amazon Publisher Cloud, a tool built on AWS Clean Rooms’ secure data collaboration environment, that enables publishers to analyse first-party data together with Amazon Ads insights and offer custom media buys for advertisers that improve campaign performance.
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