Amazon Advertising Revenue Grows to Nearly $10 Billion Annual Run Rate

Amazon just reported its third quarter financial results.

One interesting data point: Amazon’s advertising revenue was up to about $2.495 billion. (Amazon does not give exact numbers for advertising revenue; see notes below.) On an annualized basis, that’s approximately a $10 billion business.

The fourth quarter is generally expected to show the strongest growth of the year. We’ll continue tracking Amazon’s advertising results.

Notes on Amazon’s reporting as it relates to advertising revenue:

  • In 2017 filings, Amazon’s footnote on “Other” revenue said: “Includes sales not otherwise included above, such as certain advertising services and our co-branded credit card agreements.”
  • In 2018 filings, Amazon’s footnote on “Other” revenue said: “Primarily includes sales of advertising services, as well as sales related to our other service offerings.”
  • Starting in 2018, Amazon said it made an accounting methodology change that resulted in an increase in “Other” revenue of $560M in Q1 2018: “Service sales also increased by approximately $560 million due to the reclassification of certain advertising services that were previously classified as a reduction of cost of sales.”
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