This annual report examines advertising campaign data to explore how brands, agencies, and third-party sellers are advertising on Amazon. It also reveals which strategies and products result in the greatest returns on ad spend (RoAS).
See key findings here and download the free full report for more insights.
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Amazon advertising sales have more than doubled over the past two years and account for a growing portion of the company’s total net sales.
Some sellers are experiencing reduced returns on their advertising spend, with the most significant differences seen in Sponsored Brands campaigns.
While many ecommerce brands and sellers struggle to manage their advertising strategies and costs, 30% are still increasing their budgets in 2022.
After recording double-digit quarter-over-quarter growth in advertising sales for six consecutive quarters, Amazon began reporting standalone revenue related to its advertising services business segment for the first time in February 2022. In 2021, the segment generated more than $31 billion in revenue, up from $19.8 billion in 2020 (a 58% increase) and $12.6 billion in 2019 (a 147% increase).
Amazon’s Quarterly Advertising Revenue
Source: Amazon.com Inc. fourth-quarter 2021 earnings release
*Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
Amazon’s Annual Advertising Revenue (in billions)
Revenue from Amazon’s advertising services business segment represented 6.6% of Amazon’s total net sales in 2021, up from 4.5% in 2019.
Source: Amazon.com Inc. 2021 10-K
Analysis of Amazon advertising campaign data for 2020 and 2021 shows returns on advertising spend experiencing volatility across several Amazon advertising variables — some trending lower and others higher.
Return on Ad Spend (RoAS) by Ad Product
Among ad campaign types, Amazon Sponsored Products continues to represent the largest share (76.3%) of advertising dollars.
Return on Ad Spend (RoAS) by Ad Targeting Type
Most popular marketing investments for Top 10 Product Categories by Return on Ad Spend (RoAS)
1. Electronics
2. Office Products
3. Musical Instruments
4. Arts, Crafts & Sewing
5. Video Games
6. Books
7. Computers & Accessories
8. Baby
9. Home & Kitchen
10. Clothing, Shoes & Jewelry
*Download the full 2022 Amazon Advertising Report to see RoAS for all product categories.
With the number of brands, agencies, and third-party sellers turning to Amazon’s advertising services on the rise, so, too, are advertising strategy options. New features such as Amazon’s demand-side platform (DSP) and Sponsored Display audiences campaigns provide new and innovative ways of reaching potential customers but also add layers of complexity for sellers seeking to optimize their approach to advertising.
59%
of sellers say increasing ad costs are a major concern for them.
46%
find it challenging to manage their advertising strategy and budget.
32%
plan to spend more money on advertising this year.
1 in 3 sellers plan to increase ad spend in 2022.
In this report, you’ll find:
Findings in this report are based on Jungle Scout’s ecommerce data collected over a three-year time frame from January 2019 through December 2021, and certain other data reflective of the first three months of 2022, across 14 global marketplaces. It includes 5,000+ distinct brands and 950,000+ unique Amazon advertising campaigns across all key ad media, and primarily represents large ecommerce enterprises.
It includes data and insights from Downstream, the leading Amazon advertising and analytics software.
We encourage you to explore Jungle Scout’s 2022 Amazon Advertising Report, and to share, reference, and publish the findings with attribution to “Jungle Scout” and a link to this page.
For more information, specific data requests, or media assets, or to reach the report’s authors, please contact us at [email protected].
Jungle Scout is the leading all-in-one platform for ecommerce sellers, supporting more than $40 billion in annual Amazon revenue. Founded in 2015 as the first Amazon product research tool, Jungle Scout today features a full suite of best-in-class business management solutions and powerful market intelligence resources to help entrepreneurs and brands manage their ecommerce businesses. Jungle Scout is headquartered in Austin, Texas and supports 10 global Amazon marketplaces.
Downstream by Jungle Scout is an enterprise-ready software solution that helps large brands and enterprises measure, manage, and optimize their ecommerce advertising campaigns.
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