Who Owns Amazon Advertising?

Amazon Advertising was established in 2012 as the company's formalized advertising platform for sellers and brands, though Amazon had experimented with simpler advertising options as early as 2008. The division emerged from Amazon's recognition that its vast product catalog and customer base represented an untapped opportunity to generate high-margin advertising revenue while enhancing the discovery experience for shoppers. The initial platform launch focused on providing sellers with basic sponsored product listings that appeared within search results, allowing merchants to gain visibility for their products by bidding on relevant keywords.

Prior to 2012, Amazon had operated a limited advertising program primarily focused on display ads and sponsored links, but the formal establishment of Amazon Advertising marked a strategic shift toward building a comprehensive advertising ecosystem. This transition reflected Amazon's growing confidence in leveraging its unique position at the intersection of e-commerce and consumer data. Unlike traditional advertising platforms that could only track customer interests, Amazon possessed the valuable combination of customer purchase intent, browsing behavior, and actual transaction data, creating a powerful foundation for targeted advertising.

Between 2013 and 2017, Amazon Advertising expanded methodically beyond basic sponsored products to include headline search ads (later renamed sponsored brands), product display ads, and enhanced brand content. The company leveraged its growing technical capabilities and vast data assets to create increasingly sophisticated targeting options for advertisers. During this period, the division's revenue grew from approximately $1.4 billion to $4.7 billion annually, establishing Amazon as an emerging competitor in the digital advertising landscape dominated by Google and Facebook.

A pivotal expansion occurred in 2018 when Amazon consolidated its various advertising offerings under the unified Amazon Advertising brand and significantly expanded its advertising API and self-service platform capabilities. This consolidation coincided with accelerated revenue growth, as Amazon reported $10.1 billion in advertising revenue for 2018, representing 117% year-over-year growth. Industry analysts identified this inflection point as evidence that Amazon had successfully positioned its advertising business as a major revenue driver beyond its traditional e-commerce operations.

From 2019 through 2023, Amazon Advertising focused on expanding its advertising formats and inventory, introducing video advertising options across Amazon properties, display retargeting capabilities, and off-Amazon advertising through its demand-side platform (DSP). The acquisition of streaming platform Twitch and the development of Amazon Publisher Services further expanded Amazon's advertising ecosystem beyond its core marketplace. By 2023, annual advertising revenue had reached approximately $37.7 billion, with Amazon capturing 7.6% of global digital advertising market share.

The most recent phase of development from 2024 to 2026 has been characterized by Amazon's aggressive expansion into video advertising, particularly through Prime Video and the integration of an ad-supported tier in 2024. This move provided Amazon Advertising with valuable premium video inventory to complement its extensive display and search advertising capabilities. Additionally, Amazon's investment in live sports broadcasting rights, including exclusive NFL Thursday Night Football games, created new high-value advertising opportunities reaching premium audiences.

By early 2026, Amazon Advertising had established itself as the third-largest digital advertising platform globally, commanding approximately 11% of global digital advertising spending. The division generated approximately $70 billion in annual revenue, representing over 14% of Amazon's total revenue. This growth trajectory reflected Amazon's successful transformation of its advertising business from a supplementary service for marketplace sellers to a core profit driver for the entire company.