Amazon’s advertising business, including Prime Video, grew at a faster rate in the December quarter than the giant online retailer’s main business.
Net sales increased 14% to $US213.4 billion in the December quarter while Amazon advertising revenue jumped 22% to $US21.317 billion.
“This growth is happening because we’re continuing to innovate at a rapid rate, and identify and knock down customer problems,” said CEO Andy Jassy.
“With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital.”
Emarketer principal analyst Sky Canaves said the core retail business maintained solid growth through the all-important holiday quarter.
"The ads business continues to win spending thanks to the maturation of Prime Video inventory, the appeal of Amazon’s expanded DSP and wider availability of AI-driven ad tech," Canaves said.
"And as Rufus (the generative AI-powered expert shopping assistant) becomes more integrated into the shopping experience, its opportunities to deliver high-conversion ad placements will strengthen."
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