Behind the Numbers: an EMARKETER Podcast Can Amazon Maintain Its Ad Revenue Momentum? Is AI Spending a Problem? And More — The 3 Big Questions for Amazon | Behind the Numbers
Feb 20, 2026
Marisa Jones, newsletter analyst on advertising and media, breaks down Amazon's ad business and AI-powered ad solutions. Rachel Wolff, retail analyst, explains e-commerce, grocery and physical retail experiments. They explore Amazon's ad revenue momentum, AI capital spending, readiness for agentic commerce, and shifts in retail strategy and automation.
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Prioritize Convenience Features To Boost Sales
- Do keep improving convenience features like Add To Delivery Now and faster same-day delivery to sustain e-commerce growth.
- Focus on grocery and order frequency to increase basket size and stickiness.
Physical Retail Experiments Haven't Scaled
- Amazon is closing many Fresh and Go stores and converting some to Whole Foods, signaling grocery retail experiments didn't scale.
- Physical retail remains small (3%) but Amazon still tests large formats like a Chicago super center.
Amazon Is Building Full‑Funnel AI Ad Tools
- Amazon is pushing full-funnel, AI-powered ad solutions linking streaming to purchase conversion on its platforms.
- Campaigns Manager, creative agents, and full-funnel tools aim to run multi-channel campaigns inside Amazon's ecosystem.