Amazon garners $10 billion in advertising revenue in Q2 2023

Amazon saw an increase in profits the second quarter, attributing the success to the deal it secured for "Thursday Night Football" in 2022 and adding more than 40 new local Amazon originals. “We’re also continuing to see strong demand for our advertising services as the team keeps innovating for brands, including the ramp up for Thursday Night Football with the ability for advertisers to tailor their spots by audience and create interactive experiences for consumers. We remain excited about what lies ahead for customers and the company,” Amazon CEO Andy Jassy said.

The company reported a net income of $6.7 billion or $0.65 per diluted share, after reporting a net loss of $2.0 billion, or $0.20 per diluted share, in second quarter 2022. Net sales grew to $134.4 billion, an increase from $121.2 billion in the second quarter of 2022. Sales in the company’s AWS cloud-computing segment grew 12 percent year-over-year to reach $22.1 billion.  Advertising revenue increased to $10.7 billion, an increase from $8.8 billion, the figure recorded one year ago. Amazon also reported its largest Prime day ever, which was held on 11 June and 12 June, with customers purchasing more than 375 million products.

The digital retailer's ad business makes up 7.3% of the worldwide digital ad market, according to Insider Intelligence. In addition to its Thursday Night Football deal, the company also credited the debut of the Matt Damon and Ben Affleck film "Air," which executives noted played in more theaters worldwide than any other Amazon Original film. Amazon also touted its 68 Emmy Award nominations, which include Prime Video’s The Marvelous Mrs. Maisel, Freevee’s Jury Duty, and MGM’s Wednesday. 

Prime Video has also grown its international offerings and now has more than 40 new local Amazon Originals, as well as live sporting events. In addition, the company announced it was launching Amazon MGM Studios Distribution in May in a quest to license Amazon Original and MGM library content to others after it appears on Prime Video, inlcuding titles such as "The Marvelous Mrs. Maisel" and "Coming 2 America."