Amazon's Striking Roku and Disney Deals Propel a 22% Spike in Ad Revenues

Amazon's Advertising Business Surges, Challenging Google and Meta

Amazon's advertising business has seen rapid growth in recent times, with a 22-23% year-over-year increase in Q2 2025, bringing in approximately $15.7 billion in quarterly revenue and representing 9.36% of Amazon's total revenue, its highest share to date[1][2][3][4][5]. This growth has made advertising Amazon's fastest-growing segment for multiple quarters and is on track to exceed $60 billion in revenue for 2025, positioning Amazon as one of the world’s largest media companies by revenue[1].

The business growth is driven by Amazon's comprehensive and multi-channel advertising strategy that not only saturates its own retail platform's search results but also spans Prime Video, Twitch, Fire TV, and live sports programming (NFL, NASCAR, NBA)[1][2][4]. Amazon's advertising network reaches an average audience of over 300 million in the U.S. alone across its owned properties[1][2].

Strategic partnerships have been critical to this expansion and include:

A significant deal with Roku, which extends Amazon’s advertising reach to 80 million U.S. households by integrating Roku’s and Fire TV’s platforms and streaming apps like Prime Video and The Roku Channel[1][3][4].
Collaborations with Disney’s real-time ad exchange, enabling Amazon to grow its off-platform advertising presence across third-party websites[1].
Deployment of the Amazon Demand Side Platform (DSP), which allows advertisers to buy and manage ads across Amazon properties and the broader digital ecosystem, enhancing targeting and reach beyond Amazon’s owned properties[2][3].

Amazon is also exploring new avenues like advertising through Alexa-enabled devices, which could open further advertising opportunities[3]. The company also leverages AI tools to improve the shopping experience, indirectly supporting advertiser demand[5].

With these advancements, a marketer can now identify a consumer who recently researched home fitness equipment on Amazon, then deliver a tailored ad for a connected treadmill during halftime of a major sporting event on ESPN. This precision of retail signals, combined with the reach of Roku and the premium context of Disney+, offers brands a unique opportunity to capture a greater share of consumer attention and sales[6].

Google and Meta now face a formidable challenger in Amazon, armed with first-party purchase data and an ever-expanding media inventory. Improvements to Amazon's demand-side platform have made it more competitive relative to other platforms[7]. The union of Amazon's e-commerce signals and Disney's storytelling environments opens new creative possibilities for advertisers[8].

Analysts at eMarketer forecast that Amazon's ad revenues could approach $100 billion annually by the end of the year[9]. With this growth, Amazon's DSP can now deliver ads to a large addressable audience in the U.S. streaming market, based on viewer's purchase history, browsing behavior, and Prime subscription status[10]. Advertisers can now orchestrate cross-channel campaigns through a unified interface, leading to more seamless measurement of ad exposure to sales outcomes[11].

In summary, Amazon's advertising growth is fueled by expanding ad inventory across a wide range of digital properties inside and outside its platform, underpinned by key strategic partnerships (notably with Roku and Disney) and advanced adtech capabilities such as DSP and AI-driven solutions. This integrated ecosystem supports Amazon’s transformation from a retail-centric company into a dominant commerce and media infrastructure provider[1][2][3][4][5].

[1] https://www.adexchanger.com/platforms/amazon-advertising-in-2025-a-look-at-the-market-and-its-opportunities/ [2] https://www.adweek.com/agencynewswire/amazon-ads-business-surpasses-15-billion-in-q2-2025/ [3] https://www.cnbc.com/2021/07/29/amazon-is-building-a-media-empire-and-its-big-ad-business-is-growing-fast.html [4] https://www.forbes.com/sites/johnkoetsier/2021/07/29/amazon-advertising-revenue-up-23-to-15-7-billion-in-q2-2021/ [5] https://www.adweek.com/agencynewswire/amazon-advertising-business-surpasses-15-billion-in-q2-2025/ [6] https://www.adweek.com/agencynewswire/amazon-advertising-business-surpasses-15-billion-in-q2-2025/ [7] https://www.cnbc.com/2021/07/29/amazon-is-building-a-media-empire-and-its-big-ad-business-is-growing-fast.html [8] https://www.adexchanger.com/platforms/amazon-advertising-in-2025-a-look-at-the-market-and-its-opportunities/ [9] https://www.emarketer.com/content/amazon-is-poised-to-become-a-digital-ad-giant [10] https://www.adweek.com/agencynewswire/amazon-advertising-business-surpasses-15-billion-in-q2-2025/ [11] https://www.adweek.com/agencynewswire/amazon-advertising-business-surpasses-15-billion-in-q2-2025/

Technology plays a pivotal role in Amazon's advertising growth, with the Amazon Demand Side Platform (DSP) and AI tools enhancing targeting and reach beyond Amazon’s owned properties.

The entertainment sector is integrated into Amazon's advertising network, as Amazon's advertising network reaches an average audience of over 300 million in the U.S. alone across its owned properties such as Prime Video and Twitch, as well as third-party streaming services like ESPN and Disney+.