Amazon's advertising division posted revenue of $19.8 billion in the second quarter, a 26% year-over-year increase that outpaced the company's core retail growth. The growth rate topped North American retail's 16% and international operations' 15%, highlighting the rising importance of advertising to Amazon's broader business model. CEO Andy Jassy said, "Advertising had another strong quarter with 26% year-over-year growth."
Beyond the headline number, the results reveal how the advertising business is changing. Amazon is integrating artificial intelligence across both consumer shopping experiences and advertiser tools.
AI automates campaign planning
Amazon broadened its Ads Agent, an AI-powered platform that simplifies campaign planning, launch and optimisation-a move that illustrates the increasing use of AI Agents & Automation in advertising. Advertisers using the tool see an 8% reduction in cost per impression and a 6% drop in customer-acquisition costs, the company said. The trend points to AI agents taking over many manual tasks, slashing campaign setup times from hours to minutes.
Conversational shopping changes the purchase journey
Amazon merged its AI shopping assistant Rufus with Alexa+ to create Alexa for Shopping, a conversational assistant that provides personalised recommendations, compares products, tracks prices and can automate purchases. The company reported that customers using Alexa for Shopping spend more than 40% more per order. This shift means that brands may need to prepare for a future where AI assistants influence a large share of purchasing decisions, complementing traditional search and social strategies.
Media ecosystem fuels growth
Prime Video's sports programming drew record audiences during the quarter. Game 7 of the NBA Eastern Conference semifinals attracted 6.5 million viewers in the U.S., and European NBA viewership more than doubled year over year. Amazon's combination of commerce, streaming and advertising allows it to connect ads directly to shopping behaviour, so brands can measure not only who saw an ad but also who eventually made a purchase.
Why this matters for marketing professionals
Amazon's results show that AI is reshaping both how advertising campaigns are created and how consumers shop. Brands that test tools like automated campaign optimisation and conversational commerce may gain an edge in cost efficiency and customer engagement. As these changes accelerate, expertise in AI for Marketing becomes more valuable. The ability to link advertising to actual purchase data gives Amazon a measurement advantage that is hard to replicate elsewhere, making it a platform that marketers will need to watch closely.
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