Amazon Exceeds $1.8 Billion Ad-Spending Commitment Target for Video-Streaming Services, According to The Information Report by Reuters

Amazon has surpassed its target of securing $1.8 billion in advertising commitments for its video streaming services next year, according to a report from The Information, which cites a source familiar with the company’s advertising initiatives.

Advertisers typically negotiate substantial commitments for TV and streaming ads over the next 12 months in the upfront ad market, which recently wrapped up for 2024.

These commitments include advertising on Prime Video as well as Amazon’s live sports broadcasts, such as Thursday Night Football games featuring the National Football League. The retail giant is optimistic about sustaining its advertising revenue growth by investing in streaming TV and gaining a significant portion of ad budgets, particularly as spending shifts more toward streaming services.

Amazon did not provide a comment on the report when approached for a statement.

Earlier this year, the company began incorporating advertisements into its Prime Video platform for the first time. In July, Amazon, together with ESPN and NBCUniversal, acquired the broadcasting rights for National Basketball Association games in an extensive 11-year deal valued at $77 billion.

The inclusion of NBA games enhances Prime Video’s portfolio of live sports events, which will also feature NFL and NASCAR starting in 2025.

In the second quarter, Amazon fell short of projections for advertising sales, a key performance indicator in the industry, as it intensifies competition with Meta Platforms and Alphabet’s Google. Advertising sales reached $12.8 billion, which was below the average expectations of $13 billion, based on data from LSEG.