What Happened: The Seattle-based e-commerce giant said viewership for its advertisement-supported video content was 20 million a month in January 2020 and has since grown six-fold.
The company said Twitch — its live streaming service focused on gaming, including broadcasts of eSports competitions — helped drive the growth as it began adding the ad inventory from the service to its programmatic advertising platform unlike earlier when inventory was bought more manually.
Amazon also features other ad-supported video content such as live sports including “Thursday Night Football,” IMDb TV, third-party apps and Amazon’s News apps.
The monthly viewership numbers include U.S. viewers who watched Amazon’s ad-supported, over-the-top content on any device.
The e-commerce giant last week reported a 77% jump in its first-quarter advertising revenue to more than $6.9 billion. The company attributed the ad revenue growth to higher traffic and the improvement in its advertising placements leading to more relevant ads for the customers.
Amazon is also planning to launch a mobile app for its ad-supported streaming service IMDb this year, as per the CNBC report. The company said IMDb TV has seen a 138% increase in viewership year-over-year, and that 62% of viewers are between the ages of 18 to 49.
Why It Matters: According to a digital commerce report, Amazon accounts for nearly a third of all e-commerce in the United States and makes up nearly half of online shopping searches in the country on Amazon.com.
The company, founded in founder Jeff Bezos’s garage 27 years ago and now an online retail giant, saw its advertising business grow the most in over two years to outpace the growth of its other tech rivals Alphabet Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB) in the first quarter.
Price Action: Amazon shares closed 2.33% lower at $3,386.49 on Monday.