Amazon brought in $19.64 billion from advertising in Q3 2026, up 11% from a year earlier. In 2025, its advertising revenue totaled $68.64 billion.

Those numbers establish the scale of Amazon’s ad business. The more revealing figures for advertisers sit further down: what a click costs, how often it becomes an order, and how sharply results vary between product categories. Skai put average Sponsored Products cost per click at $0.94 in Q3 2026, but a brand selling household products may face very different economics from one selling toys.

This collection of Amazon advertising statistics connects the market-wide numbers with the campaign benchmarks behind them. It covers revenue and retail media share, then looks at conversion, streaming audiences, and AI advertising, with sources and reporting periods throughout.

Key Takeaways

• Amazon reported $68.64 billion in advertising services revenue in 2025, approximately 22% more than in 2024.
• Q3 2026 advertising revenue grew 11% year over year as reported, or 12% excluding foreign exchange. Prime Day timing affected the comparison.
• EMARKETER estimated that Amazon accounted for more than 75% of US retail media ad spending in 2025.
• Skai reported Q3 2026 average CPC of $0.94 for Sponsored Products and $0.99 for Amazon DSP in its dataset. These are sample benchmarks, not universal Amazon prices.
• Amazon published a Prime Video average monthly ad-supported audience estimate above 315 million globally, based primarily on September 2024 through August 2025 data.
• Use contribution, acquisition cost, and the purpose of the campaign to set spending limits. Revenue growth, audience reach, and lower CPC do not establish profitability on their own.

About the sources: Financial results come from Amazon; market estimates come from the named research provider. Campaign benchmarks describe each provider’s dataset. Forecasts and older audience research are labeled with their periods. Read the source and methodology notes.

Amazon Advertising Revenue by Quarter and Year

Amazon’s advertising revenue extends beyond sponsored product listings. Its advertising services line covers sales to sellers, vendors, publishers, authors, and others, bringing several advertising formats into one financial total.

Amazon’s Advertising Revenue Reached $68.64 Billion in 2025

Amazon earned $68.635 billion from advertising in 2025, according to its annual results. That is approximately 22.1% more than the roughly $56.21 billion Amazon earned in 2024, a figure calculated by adding its four reported 2024 quarters.

The same release provides these quarterly 2025 figures:

• Q1: $13.921 billion.
• Q2: $15.694 billion.
• Q3: $17.703 billion.
• Q4: $21.317 billion.

The holiday quarter was the largest of the year. For brands reviewing their own performance, that seasonal rise is a reason to compare equivalent periods before attributing a sales change to campaign improvements.

Prime Day Timing Complicates the 2026 Comparison

Amazon reported $17.243 billion in advertising services revenue in its Q1 2026 results and $19.809 billion in its Q2 2026 results. In the Q1 release, Amazon CEO Andy Jassy said advertising had passed $70 billion in trailing-twelve-month revenue.

Q3 revenue came in at $19.637 billion, up 11% year over year as reported, or 12% excluding foreign exchange. That was slightly below Q2’s dollar total. Amazon’s October 29 release points to timing effects, primarily involving Prime Day, as a factor in the advertising growth comparison.

Prime Day occurred in Q2 for most large countries in 2026, versus entirely in Q3 in 2025. That makes a simple Q2-to-Q3 comparison less useful for judging underlying demand. Amazon expects growth to pick up again. In its Q3 2026 results, the company guided for year-over-year advertising revenue growth in the high teens in Q4 2026.

A calendar-quarter comparison and a Prime Day comparison therefore answer different questions. Keep both in view when reviewing event performance.

Amazon’s Share of US Retail Media

EMARKETER’s June 2026 Amazon advertising analysis estimates that Amazon accounted for more than 75% of US retail media advertising spending in 2025. It also cites a $56.71 billion forecast for Amazon US retail media ad spending in 2026.

That puts Amazon at the center of the US retail media market. The geographic distinction matters: this share concerns US retail media, whereas Amazon’s earnings releases report its global advertising business.

EMARKETER’s H1 2026 forecast puts US retail media ad spending at just under $72 billion in 2026, rising to more than $113 billion in 2030. It projects that Amazon’s US retail media revenues will exceed $75 billion by 2028 and that Amazon will capture roughly 70% of retail media connected TV ad spending in 2026. All three figures are forecasts.

The Broader Advertising Market

The IAB/PwC 2025 Internet Advertising Revenue Report announcement puts US commerce media revenue at $63.4 billion, up 18% year over year. Total US internet advertising revenue reached $294.6 billion, up 13.9%.

Within that report, commerce media outpaced internet advertising overall. It gives useful context for investment in commerce-related advertising, though its US total cannot be used to calculate a share for Amazon’s global revenue.

Globally, WPP Media’s December 2025 This Year Next Year forecast projected commerce ad revenue of $178.2 billion in 2025, passing TV.

Amazon Ads CPC and Conversion Benchmarks

A click price becomes useful when you know what happens after the click. Cost per click, or CPC, divides spend by clicks; conversion rate shows how often a defined interaction leads to a conversion. Together, they help explain why similar traffic budgets can produce different order volumes.

Sponsored Products and DSP Click Costs

Skai’s Q3 2026 benchmark summary reports average CPC of $0.94 for Sponsored Products and $0.99 for Amazon DSP in its dataset.

Its Q1 2026 release reported $0.96 for Sponsored Products and $0.86 for DSP. The historical comparison shows why one quarter’s lower-cost format should not become a permanent allocation rule.

In Skai’s Q1 figures, DSP clicks cost less than Sponsored Products clicks. By Q3, the order had reversed. That is useful pricing context, but choosing between the formats still requires a look at the customers and outcomes each delivers.

Ad Format and Category Change the Benchmark

Pacvue’s Q2 2026 benchmark report shows how differently formats moved in the same quarter: Sponsored Brands conversion rate rose 26.5%, while average daily spend rose 26.1% for Sponsored Brands and 21.2% for Sponsored Products.

A single average hides much of that variation. For a household brand, the relevant comparison may be another household product with similar economics, rather than an Amazon-wide CPC. The movement in conversion rate also matters as much as the movement in click price.

For example, in a hypothetical campaign, a $1 CPC and 10% purchase conversion rate imply a $10 advertising cost per order. If CPC rises 10% to $1.10 and conversion rate rises 20% to 12%, cost per order falls to about $9.17. Order value and product costs still decide whether those orders are profitable.

What Lower CPC Can Hide

Skai’s Q3 2026 press release reports Amazon advertising CPC down 16% year over year, alongside conversion rates down 11% and conversions up 1%.

The useful question is how much you pay for the outcome. If conversion weakens enough, cheaper clicks can still leave an advertiser paying more for each order. Order value then determines how much revenue those purchases bring in.

Amazon DSP and Prime Video Advertising Statistics

Amazon’s advertising business also reaches beyond the shopping results page. Amazon DSP, its demand-side platform, lets advertisers buy placements programmatically across Amazon properties and third-party inventory. Prime Video adds streaming advertising to the mix. Their statistics reveal two different things: investment and performance in DSP, and the potential audience for streaming campaigns.

DSP Investment and Outcomes

Skai reports Amazon DSP investment up 34% year over year in Q3 2026, despite Prime Day moving out of the quarter.

Tinuiti’s Q2 2026 benchmark report shows Amazon DSP spending up 67% year over year, and Pacvue reported DSP new-to-brand sales up 26.6% in the same quarter.

Skai, Tinuiti and Pacvue measure separate advertiser datasets, so their figures cannot be combined into one campaign result. Read together, they show DSP budgets growing across several large advertiser samples.

New-to-brand sales add a customer-acquisition perspective, although establishing how many purchases advertising caused requires a separate assessment of incremental impact.

Prime Video’s Published Audience Exceeds 315 Million

In March 2026, Amazon cited an average monthly ad-supported Prime Video audience above 315 million globally. In the US, Amazon puts the average monthly ad-supported audience at more than 130 million viewers.

The estimate is unduplicated and covers original and licensed programming, live sports and events, and free ad-supported live channels. It primarily uses Amazon data from September 2024 through August 2025, with some local timing variations.

The figure describes people in the ad-supported audience, rather than paying subscriptions. It gives a sense of Prime Video’s scale. An individual campaign’s reach still depends on the selected geography, audience, inventory, and budget.

AI Shopping and Advertising Statistics

Amazon’s AI advertising statistics cover two sides of the buying process: shoppers asking questions and advertisers using tools to manage campaigns. The comparisons below distinguish engagement from conversion and campaign costs.

Alexa for Shopping, Formerly Rufus

If you know Amazon’s shopping assistant as Rufus, the name has changed. Amazon renamed it Alexa for Shopping on May 13, 2026. Its Q1 reporting still uses the earlier name. Algofy’s look at how Rufus changes product discovery covers the shopper side.

In its Q1 2026 reporting, Amazon said nearly 20% of shoppers who interacted with a prompt in Rufus continued the conversation about that brand. This describes engagement among prompt interactors, not the percentage of all Amazon shoppers who engage with advertising.

Sponsored Prompts and Ads Agent Targeting

In Q2 2026 earnings commentary, Amazon reported that shoppers clicking a Sponsored Prompt converted 48% more often and spent 21% more on average than those who did not.

The same commentary reported 8% lower cost per impression and 6% lower cost per acquisition among advertisers using Ads Agent targeting.

These are Amazon-reported comparisons, not guaranteed results, since shopper intent, advertiser characteristics and campaign mix also shape them.

Shopper Behavior and Advertising Adoption

The financial and campaign figures describe advertising activity. Shopper research adds context about the people advertisers hope to reach, with important differences between membership usage, product discovery, and sales after ad adoption.

Prime Membership Usage

CIRP estimated that 201 million US Amazon customers used Prime membership as of the December 2025 quarter.

CIRP counts individual shoppers using Prime, including family members who share a membership, so the figure is higher than the number of paid subscriptions.

Where Product Searches Begin

Jungle Scout’s Q1 2024 Consumer Trends report found that more than half of US consumers start their product searches on Amazon. The survey is from early 2024, so treat it as a snapshot of where discovery starts rather than a 2026 measurement.

Sales Growth After Sponsored Products Adoption

Amazon reports that Sponsored Products adopters saw 34% more sales growth than non-adopters four weeks after adoption. The figure comes from Amazon internal data for September 2023 to August 2024 and covers multiple marketplaces, not just the US.

Sales growth is not profit growth, so check how much contribution remains after advertising and other order costs. Costs are rising for many sellers too: 32% of Amazon sellers say growing advertising expenses are a concern, according to Jungle Scout’s State of the Amazon Seller 2025.

What These Numbers Mean for Your Budget

The benchmarks are most useful when they help explain a change in your own results. Three checks keep the interpretation tied to your business.

Compare like with like. Use the closest available category, format, geography, and period. Separate branded demand from acquisition campaigns and promotional events from ordinary trading days. A DSP average and a Sponsored Products average describe different traffic mixes.

Evaluate the cost of an outcome. Read CPC alongside conversion rate, order value, and contribution. Skai’s Q3 data, where CPC fell 16% but conversion rate fell 11%, shows why click price alone is insufficient.

Set targets from product economics. Advertising cost of sales, or ACoS, is ad spend divided by attributed sales. Return on ad spend, or ROAS, is attributed sales divided by ad spend. A 20% ACoS equals 5.0 ROAS.

For a hypothetical $40 order with $28 in variable costs before advertising, $12 remains, giving a 30% contribution break-even ACoS. Retaining $4 per order reduces allowable ad spend to $8, equivalent to 20% ACoS. Include relevant fees, fulfillment, discounts, and expected returns, and keep the sales basis consistent. Fixed overhead still needs to be covered.

Algofy’s Amazon PPC strategy guide explains how to turn those economics into campaign targets. The benchmarks here help identify questions to investigate; your own results determine whether additional spending meets the objective. Algofy’s guides to Amazon ad placements and AI-powered bid management cover two levers that change what each click costs.

Sources and Methodology

Amazon’s earnings releases provide global advertising services revenue. EMARKETER’s market-share figures concern US retail media; the IAB/PwC report measures US internet advertising and commerce media. Different scopes should not be combined to calculate an implied market share.

Skai, Pacvue and Tinuiti publish findings from their own advertiser datasets. Their account populations, geographic coverage, attribution settings, and aggregation methods can differ. The figures are cited separately, without combining them into a single Amazon-wide average.

Year-over-year changes compare against the corresponding prior-year period as described by each source. Relative growth differs from percentage-point change: conversion moving from 10% to 12% is a 20% increase, or two percentage points.

Amazon product comparisons are attributed to Amazon, with the reported comparator retained. They are not presented as controlled estimates of incremental impact. Older survey and audience figures retain their original measurement periods; 2026 forecasts remain labeled as forecasts.

Frequently Asked Questions

How Much Revenue Does Amazon Generate From Advertising?

Amazon reported $68.635 billion in advertising services revenue in 2025. Its latest reported quarter as of October 30, 2026 is Q3 2026, at $19.637 billion. These are global company revenue figures, not advertisers’ attributed sales.

What Is Amazon’s Share of US Retail Media?

EMARKETER estimated Amazon’s 2025 share at more than 75%. Its June 2026 analysis cited a $56.71 billion forecast for Amazon US retail media ad spending in 2026.

What Is the Average Amazon Advertising CPC?

There is no single CPC that describes every Amazon campaign. Skai’s Q3 2026 dataset reports Sponsored Products CPC at $0.94 and DSP CPC at $0.99. Category, format, targeting, and event timing can produce substantially different account results.

What Is a Good ACoS?

A good ACoS is one below your break-even ACoS, which equals your contribution before advertising divided by your selling price. For a $40 product with $28 in variable costs, $12 remains, so break-even ACoS is 30%. If you want to keep $4 profit per order, your target drops to 20%. Industry averages can’t tell you this, because they don’t reflect your margins.

Why Do Benchmark Providers Report Different Results?

They analyze different account populations and may use different geographic coverage, categories, attribution settings, and aggregation methods. A change in average spend is also different from a change in total spend. Compare definitions before comparing values.

Does Lower CPC Mean Better Advertising Performance?

Only if the traffic also supports the required outcome. Lower CPC can coexist with weaker conversion or lower order value. Evaluate acquisition cost, contribution, and the campaign’s agreed objective alongside click costs.

Do New-to-Brand Sales Prove Incremental Growth?

No. New-to-brand reporting and incrementality answer different questions. Use the applicable reporting definition to understand purchase history, then use an appropriate test to assess whether advertising caused additional demand.

Build Your Amazon Plan Around Your Economics

A market-share figure can establish Amazon’s importance. A category benchmark can show where to look more closely. Your next spending decision depends on the performance and economics of your own products.

Algofy’s Amazon marketing services connect campaign management, optimization, and automation. Its Amazon creative services support the imagery and content behind the buying experience. Algofy has helped 300+ clients achieve over $1 billion in ad sales, and its budget allocation guide shows how to split spend before you scale.

Book a call with our team. Bring recent campaign results, product margins, and inventory priorities so the discussion starts with the decisions your business needs to make.