Amazon Advertising Soars as AI-Driven Shopping Takes Hold

Amazon's advertising business is seeing significant growth thanks to its AI-driven shopping capabilities. The company generated $19.8 billion in revenues from Amazon Ads in the second quarter of 2026, up 26% year over year.

The introduction of Alexa for Shopping has been a key catalyst, providing an agentic shopping experience that combines personalized recommendations, product comparisons, and automated purchasing. This has created additional touchpoints for sponsored placements within conversational commerce.

Advertiser adoption is increasing as the effectiveness of these placements supports higher conversion rates and average order values. In the second quarter, shoppers who clicked a sponsored prompt converted to a sale 48% more often and spent 21% more on average than those who did not.