Amazon Exceeds Ad Spending Goals

(Reuters) – Amazon (NASDAQ:AMZN) has surpassed its target of attracting $1.8 billion in ad-spending commitments for its video-streaming services for next year, as reported by The Information on Thursday, citing a source familiar with the company’s ad sales efforts.

Advertisers negotiate substantial TV and streaming ad commitments during the upfront ad market, which recently concluded for 2024.

The spending commitments encompass ads on Prime Video and Amazon’s live sports broadcasts, including the NFL’s Thursday Night Football games.

The e-commerce giant is betting on maintaining its ad revenue growth through investments in streaming TV and capturing a significant share of ad budgets, particularly as they increasingly shift toward streaming-video services.

Amazon declined to comment on the report when contacted by Reuters.

The company initiated placing ads on its Prime Video service for the first time earlier this year.

In July, Amazon, in collaboration with Walt Disney (NYSE:DIS)‘s ESPN and Comcast-owned NBCUniversal, secured the rights to broadcast NBA games in an 11-year deal valued at $77 billion.

The NBA addition expands Prime Video’s growing list of live sports offerings, which includes NFL and NASCAR in 2025.

Amazon fell short of advertising sales estimates, a closely monitored metric, in the second quarter as it intensifies its competition with Meta (NASDAQ:META) and Alphabet (NASDAQ:GOOGL)‘s Google. Sales of $12.8 billion were below the average estimate of $13 billion, according to LSEG data.