{"id":222847,"date":"2025-05-04T12:56:39","date_gmt":"2025-05-04T12:56:39","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/marketing\/while-the-ad-market-stalls-amazon-keeps-climbing\/"},"modified":"2025-05-04T12:56:39","modified_gmt":"2025-05-04T12:56:39","slug":"while-the-ad-market-stalls-amazon-keeps-climbing","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=222847","title":{"rendered":"While the ad market stalls, Amazon keeps climbing"},"content":{"rendered":"


\n<\/p>\n

Some companies just don\u2019t lose \u2013 even when the market is in free fall. Amazon\u2019s ads business is proof, cruising steadily while the broader market sputters in the face of economic drag.<\/p>\n

That strain has already forced ad spend forecasts down as CMOs scramble to rework budgets and reallocate dollars in the thick of the turbulence. Unsurprisingly, more of that money is ending up in Amazon\u2019s cart, where ads are close to the point of purchase \u2013 easier to justify, harder to cut.\u00a0<\/p>\n

\n

Over the last quarter, it raked in $13.92 billion, a 19% rise on the same period a year ago, according to its latest earnings update.\u00a0<\/p>\n

\u201cWe\u2019re seeing strength across our broad portfolio of full funnel advertising offerings that help advertisers reach an average ad supported audience of more than 270 5 million in the US alone, this includes our top of funnel efforts to drive brand awareness,\u201d Amazon CEO Andy Jassy told analysts on the company\u2019s earnings call yesterday. \u201cWe continue to see a lot of opportunity to further expand our full funnel capabilities for brands.\u201d<\/p>\n

The numbers and commentary only confirm what media buyers have been hinting at all year: Amazon\u2019s on track for a big 2025. It might still be behind rivals in share of wallet but it\u2019s fast becoming the fastest-growing line on media plans \u2013 and the hardest one to leave off.\u00a0<\/p>\n

According to six ad execs that Digiday caught up with, the majority of their clients are spending more on Amazon\u2019s demand-side platform (DSP) this year, as it seems to be a surefire way to see them through<\/a> the economic uncertainty. Even Amazon has pitched them<\/a> the same message.<\/p>\n

Basis Technologies\u2019 group vp, search media solutions Robert Kurtz told Digiday that while the Amazon DSP spend his team managed for clients was relatively low last year, growth rates for 2025 are already high.<\/p>\n

\u201cWe\u2019re seeing an increase in the number of individual brands spending on the platform by 400%, while spend increase year-to-date is 3,000% higher than this time last year,\u201d he said, without providing exact dollar figures. \u201cAlmost all of these spenders are new to the platform this year, and none of them have indicated that they would pull dollars because of recent tariff events.\u201d<\/p>\n

It\u2019s a similar story for Power Digital clients, which include drinkware brand Corkcicle and keto-friendly snack and cereal brand Catalina Crunch. The company\u2019s director of retail marketing, Katie Davis said that amid economic uncertainty, their clients are \u201cdoubling down\u201d on performance-driven channels driving omnichannel success and Amazon DSP is delivering.<\/p>\n

\u201cFrom the start of 2025, Amazon DSP investment is up 45%, with per-brand spend rising 36% since the new year,\u201d she added, though she didn\u2019t provide specifics.<\/p>\n

It\u2019s tough to gauge just how impressive these increases are without real dollar figures. Still, whatever\u2019s being spent, it\u2019s not pocket change. Amazon\u2019s DSP usually demands a $50,000 minimum, and agencies tell Digiday that even the self-serve route works best with a solid $25,000 behind it.\u00a0<\/p>\n

These kinds of commitments will matter, especially as even Amazon isn\u2019t immune to pullbacks from smaller advertisers feeling the pinch of new tariffs on Chinese goods.\u00a0<\/p>\n

As eMarketer\u2019s principal analyst Sky Canaves put it: \u201cAmazon will have to bolster ad commitments from larger and non-endemic advertisers via channels like Prime Video to offset this trend.\u201d<\/p>\n

The primary buying platform for online advertising<\/strong><\/p>\n

Amazon hasn\u2019t entirely won the industry over just yet, but its firmly on media buyer\u2019s radar. That much is clear from Tinuiti\u2019s latest Q1 2025 digital advertising benchmark report, which collated anonymized performance data from the agency\u2019s ad spend on behalf of clients.<\/p>\n

According to the report, spend on the Amazon DSP rose 12% year over year for Tinuiti\u2019s advertisers that were active throughout Q1 2024 and Q1 2025. While well more than half (57%) of all Amazon DSP spend went to inventory on pages owned and operated by Amazon, such as Amazon\u2019s website and app, as well as other sites and apps like IMDb.<\/p>\n

Even those ad execs who have experienced some issues, either with the platform or more broadly with the economic climate, aren\u2019t turning their back on the DSP.<\/p>\n

\u201cFrom Q4 2024 to Q1 2025, there were issues with pacing in the Twitch and STV inventory,\u201d said Kyle Knutsen, director of digital video at Rain the Growth agency. \u201cWe\u2019ve seen these issues become mitigated over time, allowing for more predictable spends in Q2 of this year.\u201d<\/p>\n

Similarly, Josh Glenn, vp, commerce and retail media at MindgruveMacarta said that pacing implications have varied depending on each of his client\u2019s exposure to tariff challenges<\/a>, making it difficult to identify a clear overall trend.\u00a0<\/p>\n

\u201cSome clients are staying the course with their Q1 plans, while others have pulled back,\u201d he said.<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Some companies just don\u2019t lose \u2013 even when the market is in free fall. Amazon\u2019s ads business is proof, cruising steadily while the broader market sputters in the face of economic drag. 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