Amazon Ad Revenue Increases by 24% to $17.7 Billion

Amazon had a stellar third quarter, surpassing expectations with $180.2 billion in net sales and $21.2 billion in net income. The operating margins were at a solid 9.7 percent. In particular, Amazon’s advertising revenue saw an impressive 24 percent year-over-year increase, totaling $17.7 billion.

The tech giant has been making significant strides in the advertising sector. Its ad sales cover platforms for sellers and vendors, as well as ads on Prime Video, display advertising, and its expanding demand side platform (DSP) business. The DSP business now allows advertisers and media buyers to purchase inventory on nearly every major subscription streaming service, including Netflix, Disney+, HBO Max, and more.

Despite the strong earnings, Amazon recently announced plans to reduce its workforce by approximately 14,000 employees. This move is attributed to the rapid growth of artificial intelligence technology. The company’s HR head emphasized the importance of adapting to the changing technological landscape, particularly the transformative impact of AI. Embracing a leaner structure with more streamlined processes is seen as crucial to staying agile and delivering for customers and business needs.