Amazon ad revenue surges 62% in Australia, says Pattern

Amazon has become the fastest-growing online advertising platform for brands in Australia, with local advertising revenue rising 62% year on year in 2025, according to new analysis from Pattern.

The figures point to a sharp rise in Amazon's role across Australia's digital advertising and eCommerce markets. Pattern estimated annual advertising revenue in Australia reached USD $392 million, with growth outpacing rates cited for TikTok, Meta and Google.

According to the analysis, Amazon's advertising business is growing faster than its overall net sales in Australia. Pattern also described it as the largest advertising platform within the marketplace sector, reflecting its strength in product search and customer acquisition for brands selling online.

Merline McGregor, APAC managing director at Pattern Australia, linked that growth to the structure of Amazon's retail platform.

"No other retail platform brings together search, transaction data and conversion in the same way. It's what makes Amazon one of the most effective environments for brands to capture demand at the point of purchase," McGregor said.

"Unlike Google, which relies on general search intent, or Meta, which focuses on social discovery, Amazon allows brands to advertise directly at the digital checkout, resulting in highly measurable, high-intent conversions."

Pattern's analysis also pointed to rising consumer trust. It found 64% of Australians now identify Amazon as the most trusted marketplace for product quality, up 7% year on year.

Retail share

Beyond advertising, the study found Amazon's retail operation in Australia is expanding quickly. Total retail activity across its Australian marketplace was estimated at AUD $6.2 billion, representing annual growth of 26.5%.

Based on that analysis, Amazon now holds 7.5% of Australia's online retail market. Pattern projected it could account for one in five online retail dollars in Australia by 2035 if that trajectory continues.

Its local workforce has also grown. Amazon employs about 4,785 people across its Australian operations, up from about 3,700 in 2024, an increase of roughly 30%, according to Pattern.

McGregor said the changes extend beyond market share alone.

"We're not only seeing growth in share, but a shift in behaviour," she said.

"Amazon is reaching a level where its size shapes how consumers discover, compare and purchase products. That creates a compounding effect that's very difficult for competitors to match."

Consumer demand

Pattern estimated Amazon now reaches 8.8 million active shoppers in Australia after 11% growth in mid-2025. It also found 66% of consumers plan to buy from Amazon in the next 12 months, the highest level among marketplaces in the country.

Younger consumers appear to be a key part of that trend. The analysis found 76% of Australians aged 25 to 34 bought from the platform in the past year.

Another notable shift is the changing mix of sellers on the marketplace. Pattern said growth in Amazon's third-party seller model has reshaped the local business, moving it away from its earlier reliance on first-party retail relationships.

McGregor said brands now have more direct options than they did in Amazon's early years in Australia.

"Eight years ago, brands had few options beyond wholesale partnerships with Amazon," she said.

"Today, the marketplace has matured. Brands can go direct, retain control over pricing and positioning, and scale on their own terms through the 3P model.

"This is consistent with global trends. Increasingly, brands are choosing 3P because it gives them greater control and flexibility in how they operate."

Pattern also said Amazon's marketplace now plays a broader role in brand discovery. Nearly half of Australian shoppers visit a brand's own website after first discovering it on Amazon, according to the analysis, up 18% year on year.

Capacity limits

Even so, the report said operational constraints may be limiting how quickly Amazon can expand in the near term. A major new fulfilment centre in Melbourne has been delayed after the collapse of the construction contractor, slowing the rollout of logistics infrastructure.

That delay has likely affected short-term growth, Pattern said, because fulfilment capacity remains central to handling rising consumer demand and seller volumes.

McGregor said additional logistics infrastructure will be important to the next stage of expansion.

"Demand is clearly there, but fulfilment capacity remains a critical enabler," she said.

"As Amazon brings additional infrastructure online, we would expect that growth to accelerate further."