Anticipated Revenue for Amazon Prime Video Advertising: Expected to Peak at $806 Million by 2025
Amazon's Streaming Ad Revenue on a Robust Growth Trajectory
Amazon's streaming ad revenue is set to experience significant growth through 2025, according to a study by S&P Global Market Intelligence Kagan. By the end of this year, the tech giant is projected to have approximately 128 million Prime subscribers, with nearly 75% of them accessing Prime Video content.
The study forecasts that Amazon's ad streaming revenue, including connected TV (CTV) and Prime Video ads, will see a 23% year-over-year increase to about $15.7 billion in Q2 2025. This momentum is expected to sustain and potentially accelerate through the end of the year, driven by the global rollout of Prime Video ads and expanded CTV offerings.
Key factors contributing to this growth include AI-powered optimization and automation, expansion of retail media and proprietary shopping data, the growth of the connected TV ecosystem, monetization of Prime Video's ad-supported audience, the Amazon Demand-Side Platform (DSP), and the integration of live sports content.
Amazon's advertising segment is seen as a growing pillar, contributing its highest ever share (9.36%) of total company revenues. The company views this segment as a key area of growth, signaling confidence in sustaining this growth through Q3 and beyond, despite potential macroeconomic pressures such as tariffs and overall AI spending.
Global programming costs for Prime Video are projected to rise to $10.56 billion in 2025, reflecting Amazon's investment in expanding live sports programming. Amazon introduced ads on Prime Video in January 2024, with ad revenue expected to rise from $433 million in 2024 to $806 million in 2025.
Of the over 90.5 million Prime Video users, only 5.48 million are on the ad-free tier. The growth in Amazon's ad streaming revenue is attributed to the ad-supported version reaching over 130 million U.S. consumers monthly. Other popular features among Prime subscribers include Amazon Music, Prime Reading, and Prime Gaming.
However, the study from S&P Global Market Intelligence Kagan does not provide specific data for the ad-supported tier of Prime Video users beyond 2024 or advertising revenue beyond 2025. The demographic trend of Prime Video viewers is slightly younger and more likely to have children compared to the general population, consistent with broader Amazon shopper profiles.
In summary, Amazon's streaming ad revenue is on a robust growth trajectory through 2025, fueled especially by Prime Video ad expansion, CTV innovation, AI-driven ad capabilities, and extensive data assets. This growth is expected to continue despite potential macroeconomic pressures, positioning Amazon as a significant player in the streaming ad market.
- The global rollout of Prime Video ads and expanded Connected TV (CTV) offerings are two key factors expected to drive Amazon's streaming ad revenue to a 23% year-over-year increase, projected to reach $15.7 billion in Q2 2025.
- Amazon's advertising segment, fueled by AI-powered optimization and automation, expansion of retail media, and the growth of the connected TV ecosystem, has contributed its highest ever share (9.36%) of total company revenues and is viewed as a key area of growth.
- The ad-supported version of Prime Video is reaching over 130 million U.S. consumers monthly, contributing significantly to the growth in Amazon's ad streaming revenue.
- By 2025, Amazon's global programming costs for Prime Video are projected to rise to $10.56 billion, reflecting Amazon's investment in expanding live sports programming, while ad revenue for Prime Video is expected to rise from $433 million in 2024 to $806 million in 2025.
