Amazon this week reported the Q3 2023 earnings where advertising played a significant role in the company's growth. Amazon's advertising revenue growth is outpacing the growth of its remaining businesses. In the third quarter of 2023, Amazon's advertising revenue grew 26% year-over-year, while its total revenue grew 13% year-over-year. This means that advertising revenue is accounting for a growing share of Amazon's overall revenue.
Amazon's advertising business is now the third-largest digital advertising platform in the world, behind only Google and Meta. The company offers a variety of ad formats, including sponsored products, sponsored brands, and display ads. These ads appear on Amazon's search results pages, product pages, and other pages across its website and mobile app.
“We had a strong third quarter as our cost to serve and speed of delivery in our Stores business took another step forward, our AWS growth continued to stabilize, our Advertising revenue grew robustly, and overall operating income and free cash flow rose significantly,” said Andy Jassy, Amazon CEO.