Amazon's advertising business leads its rivals

Amazon’s impressive track record in the advertising world

Amazon has experienced a meteoric rise in the advertising business over the past eight years. If we compare the annual advertising costs of the big three players - Amazon, eBay and Alibaba - between 2014 and 2022, Amazon stands out as the clear favourite.

According to data from a latest report, the company has gone from an investment of $3.3 billion in 2014 to a staggering $20.6 billion in 2022.

This substantial investment demonstrates Amazon’s strong commitment to improving its brand visibility, expanding its customer base and exploring innovative advertising initiatives. Although Amazon’s advertising unit represents a small fraction of the $149.2 billion in revenue the company posted in the fourth quarter of last year, it is a fast-growing area that analysts consider a “crucial player” in the digital advertising market.

The development of Amazon’s advertising business

In the coming years, Amazon intends to continue its strong focus on retail media and will continue to dominate the landscape in the United States. Since the launch of its advertising platform, the retail sector has undergone significant development with various solutions. However, for the time being, Amazon will continue to account for the majority of retail media investments over the next four years in the US. According to the study “Retail media ad spend in the U.S. 2019-2026, by platform” conducted by Statista, in 2019 Amazon’s total advertising revenue in the U.S. amounted to $10 billion. Since then, revenues have tripled and Amazon has climbed its way to the top of the Retail Media elite. The company accounts for almost 80% of total retail media spending. By 2026, its revenues are expected to nearly double and grow to $64 billion. What was originally a basic functionality to promote products in search results has become a highly lucrative business both inside and outside Amazon. Today, Amazon advertising offers a wide variety of ad types, technologies, data and solutions to enable brands to reach consumers more effectively.

Amazon bets on Retail Media

Amazon continues to invest heavily in Retail Media, maintaining its dominant position in the US market. Since launching its advertising platform, the retail sector has experienced remarkable growth with a variety of solutions. Amazon continues to lead in retail media investment over the next four years in the US. According to the study “Retail media ad spend in the U.S. 2019-2026, by platform” conducted by Statista, Amazon’s total advertising revenue in the U.S. amounted to $10 billion in 2019. Since then, this revenue has tripled and Amazon has climbed to become the undisputed leader in Retail Media. The company accounts for almost 80% of total spending in this area. By 2026, its revenues are expected to nearly double to an impressive $64 billion. Save time in this process with our platform where Amazon sellers can save 60% time in optimising product detail pages, be 50% more effective following Amazon’s Style Guidelines and increase their sales by 30%. Get a free audit and start optimising your listings now! Take advantage of it. Free trial

FAQ: Amazon’s Advertising Business Dominance

How much has Amazon’s advertising revenue grown since 2014?

Amazon’s annual advertising investment climbed from $3.3 billion in 2014 to $20.6 billion in 2022.

Amazon accounts for almost 80% of total US retail media spending, according to Statista’s “Retail media ad spend in the U.S. 2019-2026, by platform” study.

How big is Amazon’s advertising business expected to get by 2026?

Statista projects Amazon’s US advertising revenue will nearly double from its 2019 level of $10 billion to around $64 billion by 2026.

Not yet in relative terms — advertising is still a small fraction of the $149.2 billion in total revenue Amazon posted in the fourth quarter, but analysts consider it a fast-growing, “crucial player” in the digital advertising market.

How does Amazon compare to eBay and Alibaba in advertising investment?

Amazon is the clear leader among the three when comparing annual advertising costs between 2014 and 2022, reflecting its much heavier and more consistent investment in retail media.