As Amazon leans further into advertising via its Prime Video service (ads were turned on there earlier this week), the tech giant’s overall ad business hit $14.6 billion in Q4 2023, the company said in its latest earnings report.
Amazon overall had net sales of $170 billion, and net income of $10.6 billion, both beating Wall Street expectations.
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On the company earnings call, Amazon CEO Andy Jassy said that the company has “increasing conviction that Prime Video can be a large and profitable business on its own.”
“And we’ll continue to invest in compelling exclusive content for Prime members like Thursday Night Football and Lord of the Rings, Reacher, Mr and Mrs. Smith, Citadel and more,” he added. “And with the addition of ads on Prime Video we’ll be able to continue investing meaningfully and content over time.”
As is usually the case with Amazon earnings report, the sprawling release also called out some highlights from the company’s divisions. In the Prime Video and MGM division, Amazon called out the success of Reacher, Saltburn, and touted its new rights NASCAR deal, among other initiatives.
The company also touted, of course, artificial intelligence, including a shopping assistant named “Rufus,” and clothing and fashion-focused AI tools. It also announced a generative AI ad tool, a sponsored TV ad offering, and “more than 15 new advertising capabilities, including enhanced audience insights and advanced campaign planning, activation, and optimization controls that help advertisers more efficiently reach relevant audiences and drive meaningful business outcomes.”
As for ads in Prime Video, Amazon CFO Brian Olsavsky said on the call that “advertisers are excited to access our Prime customer base.”
“We’re looking for ways to increase our advertising in our streaming properties… it’s an important part of the total business model,” he continued. “And we expect it allow us to have a healthy business to continue to invest in content and to continue to grow that, and we feel good about it. The way we anticipate the ads progressing, we will not have heavy ad loads relative to network TV and other things.”
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