Among companies, Amazon’s ad surge overshadows everything else

The old Google-Meta duopoly will claim less than 47% of digital ad spending this year. Adding Amazon brings the share above 60%. Every other digital ad publisher pales in comparison, including seemingly major players like Microsoft and TikTok.

Amazon’s growth spurt has many years to go

• The retail media story is no longer new, but it hasn’t run out of steam. Amazon’s ad revenue growth will accelerate for the second consecutive year in 2024, reaching 24.7%. The ecommerce giant’s nearly $42 billion take will amount to 13.9% of the digital ad market. That positions it to possibly overtake Meta before the end of the decade.

• Amazon’s OTT ad revenues are a small but increasingly important part of the story. Ad revenues from Twitch, Freevee, Prime Video, and the Fire TV platform will total $4.72 billion this year, up 84.4% from 2023. That extreme spike mostly derives from Amazon switching all Prime Video users to ad-supported video-on-demand (AVOD) status in early 2024, but healthy OTT ad increases will continue beyond this year. Amazon crosses categories more than any other ad industry player: Most of this income will count as CTV ad revenues, and all of it will count as retail media revenues as well.

Read the full report, US Ad Spending 2024.