Amazon ad revenue climbs 26% to $19.8B in Q2 on live sports and multisport reach
Multisport advertisers on Amazon see more than double the unduplicated reach of brands that stick to a single sport, executives said on a call discussing second-quarter earnings with investors Thursday. Those multisport viewers also spend 12% more and place 17% more orders on the platform, evidence of a more engaged audience. The pattern helped push Amazon's advertising segment to $19.8 billion in revenue for the quarter ended June 30, up 26% year over year and ahead of analyst estimates. Sponsored product listings remain Amazon's largest ad offering and growth driver. The company is also building a substantial position in live sports, holding broadcast rights for the NFL, NBA, WNBA and NASCAR. Jassy said inventory on 'Thursday Night Football,' the NBA, the WNBA and NASCAR all sold out, and Amazon introduced more than 30 new advertisers to the NBA in its first year covering the league.
Campaigns that run across NFL, NBA, WNBA and NASCAR inventory on Amazon capture reach and order volume that single-sport buys leave on the table, based on the company's own reach and spend figures. Sold-out inventory on 'Thursday Night Football' and NBA games signals that live sports slots on Prime Video are becoming as competitive to book as traditional broadcast upfronts. Amazon's Ads Agent, which automates campaign setup and targeting, delivered 8% lower cost per impression and 6% lower cost per acquisition for brands that used it, and the tool has expanded to 11 new countries this year. With capital expenditures raised to $220 billion for the year, $20 billion above the prior estimate, Amazon is signaling it plans to keep investing in the infrastructure and content that support this ad growth.