Magnite and Amazon’s CTV Alliance: A Play for Digital Advertising Supremacy

The shift from linear TV to streaming has turned connected TV (CTV) into the new battleground for advertising dollars—and no company is better positioned to capitalize on this trend than Magnite. Its deepening partnership with Amazon Publisher Services (APS), announced in 2024, isn’t just a strategic move; it’s a full-scale takeover bid for the $200 billion CTV advertising market. This deal, which grants Magnite exclusive access to premium Fire TV inventory, could prove to be the catalyst for outsized revenue growth and solidify its leadership in the sell-side platform (SSP) space.

The CTV Gold Rush: Why This Partnership Matters

The stakes are clear: CTV ad spending is projected to grow at a 14% compound annual rate through 2027, surpassing $100 billion in the U.S. alone. Magnite’s deal with Amazon places it directly in the path of this tsunami of demand. By integrating its SpringServe ad-serving technology with Amazon’s CTV ecosystem, Magnite gains unparalleled access to Fire TV’s 200 million active users—a demographic advertisers are desperate to reach.

The partnership’s core advantage lies in its dual-sided scalability:
1. For Publishers: APS clients now have centralized access to Magnite’s global demand pool, eliminating the fragmentation that plagued traditional ad tech. This simplifies operations and boosts CPMs—critical for publishers like DIRECTV Advertising, which praised the partnership for unifying its demand stack.
2. For Advertisers: Brands gain efficient entry into a premium, closed-loop environment where ad quality and targeting precision are prioritized.

The Financial Engine: Why Magnite’s Stock Could Soar

The financial implications are staggering. Magnite’s CTV revenue surged 65% in 2024 alone, and this partnership could accelerate that pace. By leveraging Amazon’s Certified Supply Exchange Program, Magnite is not just expanding inventory—it’s creating a virtuous cycle: more inventory attracts more advertisers, which drives higher bids, and so on.

Consider the leverage points:
- Amazon’s Ad Machine: Amazon Ads generated $14 billion in Q1 2025—a figure growing at a 25% annual clip. Its dominance in retail media networks gives Magnite access to a treasure trove of first-party data, which advertisers crave.
- SpringServe’s Synergy: The integration of Magnite’s ad tech with Fire TV’s infrastructure reduces latency and improves fill rates, directly boosting margins.

Analysts estimate this partnership could add $150 million to Magnite’s annual revenue by 2026—a 20% increase over current projections.

Risks? Yes. But the Upside Outweighs Them

Critics will point to headwinds: Google’s CTV push, regulatory scrutiny of ad tech consolidation, and the technical complexity of integrating with Amazon’s ecosystem. Yet Magnite’s early wins—like the seamless SpringServe-TAM connection—suggest it’s already overcoming these hurdles.

Moreover, the partnership’s first-mover advantage is critical. As CTV inventory becomes scarcer and more fragmented, Magnite’s direct ties to Amazon’s closed system create a moat competitors can’t easily breach.

A Buy Signal for Aggressive Growth Investors

This isn’t just about today’s earnings—it’s about owning a stake in the future of TV advertising. Magnite’s stock trades at 18x forward EV/Sales, a discount to peers trading at 25x+ multiples. With CTV revenue poised to hit 40% of its total business by 2026, now is the time to act.

In a market where CTV growth is both inevitable and unevenly distributed, Magnite has secured a front-row seat. This partnership isn’t just a win—it’s a strategic masterstroke that turns Magnite into the must-own stock for investors betting on the streaming revolution. Don’t miss the boat.

Disclosure: This analysis is for informational purposes only and should not be interpreted as personalized investment advice.