Amazon recorded $11.82 billion in advertising revenue for the first quarter of 2024 following the launch of regular commercial spots on Amazon Prime Video.
Advertising sales were up 24% year-on-year, a Q1 record for the parcels to entertainment company.
“I think advertisers are excited about being able to expand their ability to advertise with us in video beyond Twitch and Freevee to Prime video shows, movies, I think they also find that the relevancy and the measurability of that type of advertising and Prime Video ads is unique for them,” Andy Jassy, Chief Executive Officer, told an analyst call saying while it was early days Amazon was optimistic for the product.
“Prime Video ads offers brands value as we can better link the impact of streaming TV advertising to business outcomes like product sales or subscription sign-ups, whether the brands sell on Amazon or not. It’s very early for streaming TV ads but we’re encouraged by the early response,” he said.
Revenue coming in from Amazon’s subscription services increased by 11% to $10.72 billion. This includes membership to Amazon Prime and its faster delivery as well as digital video, audio book and digital music services.
The launch of generative AI capability into AWS has boosted the growth rate of the cloud delivery service.
AWS segment sales increased 17% year-over-year to $25.0 billion.
