The Smart Investor·2025-09-30 09:30Core Insights - Amazon's advertising revenue exceeded US$61 billion in the last 12 months, positioning it as a significant player in the digital ad space, traditionally dominated by companies like Alphabet and Meta [1][3] - The ad business is the fastest-growing segment for Amazon, with revenue projected to reach over US$56 billion in 2024, marking a nearly 20% increase from the previous year [3][5] - Amazon's ads are integrated into search results, making them less intrusive and more effective, as they target consumers who are already in a shopping mindset [7] Advertising Landscape - The shift in advertising budgets is notable, with brands reallocating funds from traditional search and social media to retail media, with Amazon capturing a substantial share [8] - Amazon's growth in ad revenue is outpacing many of its core retail segments, highlighting its potential as a key driver of future growth [5][12] - Competitors like Walmart and Target are also developing their own ad networks, prompting brands to rethink their advertising strategies [9] Competitive Advantages - Amazon's unique advantage lies in its ability to leverage consumer data, allowing for targeted advertising that feels organic and tends to convert better [7] - The company is not only competing with Google and Meta but is also establishing its own rules in the digital advertising space [12] - Future growth opportunities exist in video advertising through platforms like Prime Video and Twitch, as well as advancements in AI for smarter targeting [10]