Amazon’s advertising business in Australia is on a steep upward trajectory, recording a 58% surge in net sales to $242.5 million in the year ending December. This rapid growth outpaced the company’s overall net sales in the region, which climbed 22% to $3.8 billion over the same period, according to corporate filings with ASIC.
Amazon’s Expanding Digital Ad Empire
Globally, Amazon continues to cement its position as a major player in the digital advertising space. In the December quarter alone, its advertising revenue grew 18% to a staggering $17.288 billion. The company now holds a firm grip on approximately 9% of the global digital ad market, ranking third behind industry titans Google and Meta.
Prime Video Joins the Ad Boom
A key driver of Amazon’s advertising expansion is its move into streaming ads. Amazon introduced advertisements on its Prime Video platform in Australia in July last year. While still in the early stages, the company has expressed satisfaction with its progress, signaling a strong future for ad monetization on its streaming service.
Subscription Sales and Workforce Growth
Amazon’s Australian subscription services also experienced robust growth, with net sales increasing 38% to $480.4 million. The company’s workforce in Australia expanded to 3,681 employees, reinforcing its commitment to scaling operations in the region.
The Future of Amazon Advertising
With its rapid ad revenue growth and increasing presence in the digital advertising landscape, Amazon is positioning itself as a formidable competitor to Google and Meta. As the company refines its ad strategies across e-commerce and streaming platforms, its influence in the digital marketing sphere is set to grow even further.
