“In 2021 Amazon started splitting it out, and last year Amazon had $38bn of ad revenue, more than any traditional media company and bigger than the entire (now much reduced) global newspaper industry.”
Amazon made $38bn from ads in 2022, likely at operating margins over 50%. That is AWS-level profit from a line once filed under “other,” while the whole company cleared only $12bn in operating income. Brands bid against each other for placement, and shoppers wade through the results. Call it advertising if you like. It is a toll on every seller, and the buyer pays it at checkout.