Amazon tops $1.8 billion ad-spending commitment target for video-streaming services, The Information reports

(Reuters) - Amazon has exceeded its goal of attracting $1.8 billion in ad-spending commitments on its video-streaming services for next year, The Information reported on Thursday citing a person with direct knowledge of the company's ad sales efforts.

Advertisers negotiate large TV and streaming ad commitments for the coming 12 months in the upfront ad market, which recently concluded for 2024.

The spending commitments include ads on Prime Video and Amazon's live sports telecasts, such as the National Football League's Thursday Night Football games, the report said.

The e-commerce giant is betting it can keep its ad revenue growth going by investing in streaming TV and capturing a meaningful share of ad budgets, especially as they increasingly shift toward streaming-video services.

Amazon declined to comment on the report when contacted by Reuters.

The company began placing ads on its Prime Video offering for the first time earlier this year.

In July, Amazon, along with Walt Disney's ESPN and Comcast-owned NBCUniversal clinched the rights to carry National Basketball Association games in an 11-year deal valued at $77 billion.

The NBA adds to Prime Video's growing roster of live sports offerings, which include NFL and NASCAR in 2025.

Amazon missed estimates for advertising sales, a closely watched metric, in the second quarter, as it ramps up its rivalry with Meta Platform and Alphabet's Google. Sales of $12.8 billion were below average estimates of $13 billion, according to LSEG data.

(Reporting by Juby Babu in Mexico City; Editing by Krishna Chandra Eluri)