Amazon’s advertising spend reaches a record high of $16.9 billion in 2021

New Ideas in MarketingEssential news for marketers, summarised by YouGov
February 07, 2022, 10:48 AM GMT+0

In terms of global ad sales, the ecommerce giant now ranks fifth behind Alphabet, Meta, Alibaba and ByteDance.

Amazon’s annual report revealed the company increased its advertising spend to $16.9 billion in 2021. Based on this report, Amazon is also likely to be “the biggest advertiser in history”. Similarly, advertising and other promotional costs to market the company’s products and services increased by 55% to reach $6 billion.

The report also states that Amazon recorded an increase in net sales during the pandemic, rising from $280.5 billion in 2019 to $386 billion in 2020 and $470 billion in 2021. But, the company has also cut its outlay by $100 million to $10.9 billion in 2020 for the first time in 17 years.

Amazon’s sales of advertising services to sellers, vendors, publishers and authors, through sponsored ads, display and video advertising, touched $31.2 billion in 2021, marking a 58% increase from $19.8 billion in 2020. In terms of market size, the US is Amazon’s biggest market at $314 billion in sales, followed by Germany ($37 billion), the UK ($32 billion) and Japan ($23 billion).

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