Amazon advertising revenue rises after Prime Video Ads and Fallout success

“Fallout” from Prime Video

Prime Video

The ads on Prime Video are working.

Amazon's advertising business boomed in the first quarter, growing 24 percent year-over-year. The company benefited from the decision to turn on ads for Prime Video users back in January (or make users pay $3 a month to avoid them).

Advertising revenue was $11.8 billion in the first quarter, compared to $9.5 billion a year ago.

The majority of Amazon's advertising business is still in the retail segment, but the company has bet heavily on Prime Video, whose size is unmatched by any other streaming video platform except YouTube. The decision to add ads to Prime Video is also one of the reasons behind Amazon's decision to participate in TV's Upfront Week this year and sell its video content to brand advertisers.

Prime Video has an NFL package in Thursday Night Football and is preparing for a new NBA package. It also has a real hit in it Stand outbased on the popular video game franchise.

“Our advertising efforts continue to benefit from the growth of our stores and Prime Video businesses,” Amazon CEO Andy Jassy said in a statement.

Amazon's net sales for the quarter were $143.3 billion and net income was $10.4 billion.