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Home Marketing Video Marketing

Amazon’s ad business stays strong as CTV, DSP offerings improve

August 1, 2025
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  • Amazon’s revenue generated from promoting rose 22% yr over yr to $15.7 billion in Q2 2025, per an earnings statement. The revenue figure beat Wall Street expectations.
  • Executives highlighted developments across the retailer’s demand-side platform (DSP) and its recent take care of Roku around connected TV (CTV), while signaling that Alexa+ could eventually offer promoting opportunities.
  • The company said that it hasn’t yet seen diminishing demand nor meaningful appreciation in prices attributable to tariffs, but noted the possible impact of recessionary fears on its Q3 guidance.

Amazon’s ad business continues to grow at a rate that exceeds that of its core retail business, which saw net sales increase 13% to $167.7 billion within the quarter. The company helps advertisers reach a mean ad-supported audience of greater than 300 million consumers within the U.S. through full-funnel offerings that include its retail marketplace, Prime Video, Twitch and — increasingly — its DSP.

“Our trillions of proprietary browsing, shopping, and streaming signals paired with extensive supply side relationships and our secure clean rooms provide advertisers the power to optimize promoting, deliver greater precision, and drive efficient and effective promoting outcomes,” CEO Andy Jassy said of the DSP on an earnings call.

Along with revamping the DSP user experience in October, Amazon in June integrated it with Disney’s Real-Time Ad Exchange (DRAX), allowing advertisers to leverage insights from each corporations. Amazon last month also partnered with Roku to supply advertisers using its DSP what the businesses claim is the biggest authenticated CTV footprint within the U.S., a partnership Jassy called “momentous.”

“It’s a large breakthrough for advertisers bringing best at school planning, audience precision, and performance to TV promoting,” the chief said.

Amazon has continued to construct out its promoting ecosystem, unveiling artificial intelligence-powered contextual ads at its second annual upfront in May, partnering with InfoSum and Magnite around data and widening access to AI tools for advertisers.

For its retail business, Amazon expects Q3 net sales to be between $174 billion and $179.5 billion, a wide selection that takes into consideration a macroeconomic environment that continues to be effected by President Trump’s moves around tariffs. The company’s guidance around operating income in Q3 was lower than analysts expected. Executives noted that it remains to be too early to see how tariffs will settle and who will absorb the prices.

“In the primary half, we just haven’t seen diminished demand and we haven’t seen any type of broad scale [average sale price] increases. And, , so that might change within the second half. There are a number of things that we don’t know, but that’s what we’ve seen up to now,” Jassy said.

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