"Yet one driver often takes the back seat to AWS: advertising. Advertising is now a sizable, fast-growing revenue line that benefits from Amazon's unmatched data, the shopping intent of visitors, and its expanding media footprint. Further, ad revenue accelerated again in Q2, and recent management commentary points to more opportunity ahead. Put simply, advertising is an important reason the long-term investment case remains compelling."
"Amazon's advertising services revenue rose 23% year over year to about $15.7 billion in the second quarter of 2025 (22% growth excluding currency impacts). This followed 18% growth in the first quarter (19% excluding currency impacts), showing healthy acceleration as the year progresses. Drivers include more shopping activity, improved ad tools and measurement, the ongoing rollout of Prime Video ads, and connected-TV (CTV) partnerships that broaden where Amazon can serve ads."
Amazon's market capitalization topped $2.3 trillion following strong execution across e-commerce and AWS and rising AI expectations. Advertising has become a sizable, fast-growing revenue line, rising 23% year over year to about $15.7 billion in Q2 2025 (22% excluding currency). Growth accelerated from 18% in Q1. Key drivers include increased shopping activity, improved ad tools and measurement, the rollout of Prime Video ads, and connected-TV partnerships such as a June Roku integration reaching an estimated 80 million U.S. households. The ad stack — retail search, brand and display placements, and the demand-side platform — enables performance-focused targeting using authenticated shopper data.
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