Q2 Earnings: Andy Jassy on what's driving Amazon Ads growth
Amazon CEO Andy Jassy reported Q2 growth driven by conversational commerce, live sports on Prime Video, and the Ads Agent AI tool. Key metrics include a 48% higher conversion rate for Alexa-based Sponsored Prompts and an 8% reduction in CPM via AI automation.
On Amazon’s second quarter earnings call Amazon CEO Andy Jassy shared what’s powering Amazon Ads' growth:Sponsored Products continues to be our largest offering and a key driver of growth.Additionally, increasingly more shoppers are discovering products in our agentic and conversational experiences, including in Alexa+ and Alexa for Shopping. Shoppers who click a Sponsored Prompt convert to a sale 48% more often and spent 21% more on average than those who don’t.
Amazon.com announces second quarter results
Net sales increased 20% year-over-yearWe see continued growth and engagement in Prime Video Ads and Live Sports. We introduced more than 30 new advertisers to the NBA in our first year, and inventory on Thursday Night Football, NBA, WNBA, and NASCAR all sold out. Advertisers are increasingly investing in multi-sport strategies, with brands activating across multiple sports seeing 2.3 times higher unduplicated reach compared to single-sport advertisers. And multi-sport viewers are driving 12% higher spend and 17% more orders on Amazon.And finally, we make it easy to create, launch, and optimize full-funnel campaigns using AI-powered tools, including Ads Agent, which turns hours of setup and targeting into minutes. Advertisers using Ads Agent targeting see 8% lower cost per impression and 6% lower cost per acquisition, and we’ve expanded it to 11 new countries this year.For more, read Amazon's second quarter results. Trending news and stories
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- The race our nation can’t afford to lose, plus a new commitment from us and a fresh set of community investmentsOn Amazon’s second quarter earnings call Amazon CEO Andy Jassy shared what’s powering Amazon Ads' growth:Sponsored Products continues to be our largest offering and a key driver of growth.Additionally, increasingly more shoppers are discovering products in our agentic and conversational experiences, including in Alexa+ and Alexa for Shopping. Shoppers who click a Sponsored Prompt convert to a sale 48% more often and spent 21% more on average than those who don’t.
Amazon.com announces second quarter results
Analysis & Recommendations
Why This Matters
Sellers must pivot from keyword-only strategies to multi-channel models. Utilizing multi-sport advertising can yield 2.3x more unduplicated reach, while AI tools like Ads Agent can reduce CPA by 6%.
Key Takeaways
- Shoppers using Alexa-based Sponsored Prompts convert 48% higher than non-engaged users.
- Conversational shopping prompts drive a 21% increase in average transaction value.
- The Ads Agent tool provides an 8% reduction in CPM and a 6% reduction in CPA.
- Multi-sport advertising strategies achieve 2.3 times more unduplicated reach than single-sport efforts.
Recommended Actions
- →Optimize product descriptions and attributes specifically for voice-activated Alexa discovery to capture conversational commerce lift.
- →Allocate budget toward Prime Video live sports inventory (NBA, NASCAR, etc.) to tap into the 17% increase in order volume from multi-sport viewers.
- →Implement the Ads Agent tool within your advertising workflow to automate targeting and reduce manual configuration time.
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