- CTV Partnerships Drive Reach: The Roku deal unlocks 80 million authenticated household screens, elevating Amazon’s addressable TV footprint.
- Premium Inventory via Disney: Direct access to Disney+, ESPN, and Hulu through DRAX integration brings high-engagement content to Amazon’s DSP.
- Full-Funnel Retail Media: AI-powered bidding and real-time budget allocation across search, display, video, and CTV boost efficiency and ROI.
- Consumer Confidence Fuels Growth: Steady demand for essentials and premium brand partnerships underpin a 13% rise in net sales and 22% ad revenue surge.
- $100 Billion Horizon: With projections nearing nine-figure annual revenues, Amazon’s ad business threatens to rival Google and Meta in scale.
Strategic partnerships expand authenticated CTV reach and premium inventory, attracting more advertiser dollars.
Amazon’s advertising business has become one of the standout success stories among the tech giants this year. In its second-quarter earnings, the Seattle-based retailer reported that ad sales climbed by 22% to $15.7 billion, outpacing Wall Street forecasts and reflecting the growing importance of retail media in marketers’ budgets.
At the heart of this surge lie two pivotal partnerships that have transformed Amazon’s connected-TV (CTV) portfolio and its demand-side platform (DSP): a deal with Roku to tap into 80 million authenticated TVs and an integration with Disney’s Real-Time Ad Exchange, opening up premium inventory on Disney+, ESPN, and Hulu.
Broadening the CTV Footprint with Roku
Until recently, Amazon’s CTV offering centered on ads within its own properties—most notably, the ad-supported tier on PrimeVideo. While that innovation drew advertiser interest, the ability to reach viewers across multiple streaming platforms remained a missing piece. The July announcement of the Roku partnership changed that dynamic overnight.
“It's a giant leap forward for advertisers, bringing best-in-class planning, audience precision, and performance to TV advertising,” Amazon CEO Andy Jassy declared on the earnings call, underscoring the deal’s impact.
By integrating its DSP with Roku’s authenticated streaming environment, Amazon now delivers ads to one of the largest addressable audiences in U.S. streaming. Brands can precisely target viewers based on purchase history, browsing behavior, and Prime subscription status, all within Roku’s user interface.
This expansion into third-party devices marks a deliberate shift from a singular focus on Amazon’s digital real estate to a broader, platform-agnostic approach. Advertisers that once allocated separate budgets to search, display, and video can now orchestrate cross-channel campaigns through a unified interface.
The result: more seamless measurement of ad exposure to sales outcomes, and fewer blind spots in attribution.
Premium Inventory via Disney’s Ad Exchange
No single publisher commands as much cultural cachet as Disney. Recognizing this, Amazon struck another groundbreaking alliance with Disney’s Real-Time Ad Exchange (DRAX). Through this integration, Amazon DSP customers gain direct access to Disney’s premium streaming inventory—titles on Disney+, live sports on ESPN, and on-demand content on Hulu—all purchasable with Amazon’s data-driven precision.
During the Q2 earnings call, Jassy celebrated the deal’s “momentous” nature, noting that it would allow brands to “gain direct access to Disney's premium inventory across platforms such as Disney+, ESPN, and Hulu, while leveraging insights from both companies.”
This development elevates Amazon’s platform beyond mere placement—it offers premium context where viewers are deeply engaged, such as during live games or tentpole streaming events.
For advertisers targeting affluent, brand-sensitive viewers, the union of Amazon’s e-commerce signals and Disney’s storytelling environments opens new creative possibilities. A marketer can 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.
The synergy of retail intent data with premium video content represents the cutting edge of full-funnel advertising.
The Retail Media Engine Behind the Growth
The success of these partnerships must be understood within the larger context of Amazon’s retail-media transformation. What began as sponsored product ads in search results on amazon.com has evolved into a comprehensive suite that spans sponsored display, video, and now CTV placements.
According to Wedbush analyst Scott Devitt, “Improvements to Amazon's demand-side platform have led to a more competitive offering relative to other platforms and should continue to attract incremental advertising revenue.”
Indeed, recent upgrades to the DSP include AI-powered bidding algorithms that optimize in real time, ensuring that each ad dollar goes further. Advertisers can automate budget allocation across channels—shifting spend from underperforming placements to those delivering the strongest returns—without manual intervention.
Behind the scenes, this performance is underwritten by Amazon Web Services, whose scalable infrastructure supports the ingestion and analysis of vast streams of user data.
On the consumer side, Amazon’s expanded push into perishables and everyday essentials has driven new cohorts onto the platform. In 2024, three-quarters of perishables purchasers were first-time Amazon shoppers, and 20% reordered within a month—early signs that fresh-grocery offerings can cultivate repeat shopping habits.
As more users engage with Amazon for daily necessities, the behavioral signals that inform ad targeting become richer and more predictive.
Looking Ahead: Scaling to a $100 Billion Ad Empire?
Analysts at eMarketer forecast that Amazon’s ad revenues could approach $100 billion annually by the end of the year, on par with the giants of search and social. Such growth would not only cement Amazon’s position as a retail-media powerhouse but also reshape competitive dynamics across digital advertising.
Google and Meta, long accustomed to commanding the lion’s share of ad budgets, now face a formidable challenger armed with first-party purchase data and an ever-expanding media inventory.
For brands, the implications are clear: the path to performance increasingly runs through Amazon’s CTV and DSP platforms. Those who leverage the precision of retail signals, combined with the reach of Roku and the premium context of Disney+, will capture a greater share of consumer attention—and, ultimately, sales.
