Amazon surpasses $1.8 billion in advertising commitments to streaming services from Investing.com

Amazon (NASDAQ:) has exceeded its target of $1.8 billion in advertising commitments for its video streaming services next year, The Information reports. This success follows the conclusion of the Upfront advertising market, where advertisers make significant commitments for TV and streaming advertising over the next 12 months. The deals cover advertising on Prime Video and Amazon’s live sports broadcasts, including the National Football League’s Thursday Night Football games.

The company has taken significant steps to increase its advertising revenue growth. This includes investing in streaming TV and securing a significant portion of advertising budgets, particularly those shifting toward streaming video services. Amazon’s entry into the advertising market on its Prime Video platform began earlier this year and marks a new strategy for the e-commerce giant.

In a notable expansion of its sports broadcasting rights, Amazon joined ESPN and NBCUniversal in securing the rights to broadcast National Basketball Association games. The 11-year contract, announced in July, is worth $77 billion. The NBA deal complements Prime Video’s growing live sports offering, which already includes NFL and will also include NASCAR starting in 2025.

Despite this progress in its advertising and streaming services, Amazon’s advertising revenue fell short of expectations in the second quarter. The company reported advertising revenue of $12.8 billion, below the average forecast of $13 billion based on LSEG data. This comes at a time when Amazon is ramping up its competition in the advertising space with other tech giants like Meta Platforms (NASDAQ:META) and Google (NASDAQ:GOOGL).

Reuters contributed to this article.

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