Amazon's ad revenue rises 19% in Q1, exceeding expectations

In the United States, Amazon's financial performance in the first quarter of 2025 demonstrated a significant rise in its online advertising sector. The company reported a 19% increase in online ad revenue, which amounted to $13.92 billion. This growth surpassed analysts' predictions of $13.74 billion according to StreetAccount, solidifying Amazon's position as a pivotal player within the digital advertising market. While Amazon's online ad revenue comprises a small percentage of its overall sales, it has increasingly become the third-largest platform for digital advertising globally, trailing just behind Alphabet Inc. and Meta Platforms Inc. Amazon's overall sales for the first quarter totaled $155.67 billion, which also topped Wall Street forecasts projecting $155.04 billion. The reports underscore Amazon's resilience in the face of economic uncertainty and trade tensions between the U.S. and China, which have been influencing various sectors, including online advertising. The advertisement division's performance is especially noteworthy amid discussions regarding the impact of U.S. policies on international trade, including tariffs implemented by the former Trump administration. As companies like Meta and Alphabet report mixed results within their advertising segments, Amazon's growth highlights its strength in digital marketing amidst fluctuating economic conditions. Various C-suite executives from competing firms have expressed concerns about their advertising revenues, particularly in the Asia-Pacific region, which may face unique challenges due to changes in trade regulations. In contrast, Amazon's growth in the online ad space seems unwavering for now, indicating a strong demand for its ad services. As the economy continues to fluctuate, many investors are closely monitoring developments in Amazon's advertising operations for cues on future growth potential.