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Amazon Ads Revenue Surges 24% Amid Strong Q3 Cloud Growth

Marketing and Advertising

Business Honor - Amazon Ads Revenue Jumps 24% in Q3 Growth

Business Honor
31 October, 2025

AI innovations and strategic partnerships drive Amazon’s marketing and advertising business expansion globally

Amazon's ad business witnessed an impressive 24% year-over-year rise, reaching $17.7 billion in revenue for the third quarter of the year, reflecting the growing strength of the marketing and advertising arm of the company. The news comes alongside Amazon's robust cloud computing performance, with AWS posting $33 billion in Q3 revenue, up 20% from last year and above analyst expectations. AWS now maintains an annualized revenue run rate of $132 billion, highlighting Amazon's dominant position in cloud infrastructure.

The jump in ad revenue underlines how Amazon can utilize its broad ecosystem of commerce and digital platforms. Major ad agreements with Netflix, Spotify, and SiriusXM have helped power the gain, proving the platform's value for brands seeking impactful marketing solutions. Chief Executive Andy Jassy punctuated that Amazon's AI-powered innovations, which include the generative AI shopping assistant Rufus, are upping ad performance and user engagement, with 250 million users thus far in 2025. Amazon also pointed out that its delivery reach continues to expand, with 60% more rural communities now receiving Same-Day and Next-Day Delivery. Despite strong revenue growth, the company reported a 69% decline in free cash flow, mostly due to AI-related capital investments, and said it would lay off some 30,000 corporate jobs, including $1.8 billion for severance.

Looking to the future, Jassy said that AI and agentic commerce will soon change how consumers shop online, making brand interactions more tailored and personal. “AI-driven solutions will expand online shopping opportunities while delivering better selection, value, and convenience,” he said. As AWS grew, so did the revenues from Amazon Ads, a fact that further cements the company's position in digital marketing, e-commerce advertising, and AI-driven retail solutions, making it a major global marketing and advertising platform.