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Amazon's advertising revenue hit $31 billion in 2021, the company said during its fourth-quarter and full-year earnings on February 3. And at $9.7 billion in the quarter, up 32% year-over-year, ad revenue was one of Amazon's fastest-growing areas.
This marks the first time the e-commerce giant broke out its advertising revenue, which it previously lumped into its "other" category. Advertising, however, made up the bulk of that category for several years.
Amazon has become the third-biggest digital advertising company behind Google and Facebook and dominates how brands spend e-commerce ad dollars. This growth has led Walmart, Instacart, Walgreens and other retailers to build their own paid media platforms to grab a slice of the ad pie.
But under new CEO Andy Jassy, Amazon is shaking up its ad business to attract new advertisers that typically buy television.
Here's the latest on Amazon's moves to grow its advertising business and the growing competition it faces.
Amazon's ad business is big and growing
Amazon netted $31 billion in advertising in 2021 — up from $21 billion in the same period in 2020.
While that amount is a tiny sliver of Amazon's revenue from retail sales and Amazon Web Services, its cloud business, advertising is one of its fastest-growing areas. The tech giant continues to cut into advertisers' search budgets that mostly go to Google. It's also ramping up its audio and video sales pitch.
- Read more: Insiders break down Amazon Advertising's aggressive new push to win over big marketers like P&G with a new sales structure and help from AWS
- Amazon's advertising revenue is booming. Here's exactly how much its ads cost.
- Amazon more than doubled the price of its livestreaming ads to $85,000 — advertisers break down what they think of the pitch
- Leaked pitch deck slides from Amazon's Twitch reveal new data about the live-streaming site's audience
- Inside Amazon's charm offensive to win over big brand budgets from Madison Avenue
- Amazon is ramping up its pitch for audio ads after long promising Alexa would be ad-free
Who runs Amazon's ad business
Amazon has built a team of execs to pitch advertisers on its ad business, including longtime Amazon employees like Colleen Aubrey, who is part of Amazon's executive suite; and agency and brand vets who work directly with marketers.
- Read more: Alan Moss is spearheading Amazon's push to steal ad dollars from Facebook and Google. Insiders lay out his playbook for getting a slice of the $70 billion TV ad market.
- Advertising is Amazon's fastest-growing business and is expected to surpass $17 billion this year. Here are the 19 top insiders leading the charge.
- Meet the 18 power players who are leading Amazon's ambitions to take on heavyweights like Netflix and Hulu in media
- Amazon just made a big hire from ad agency Dentsu to help it take a share of the $70 billion TV-advertising business
Amazon faces growing competition for ad dollars
Other big retailers and delivery companies including Albertsons, Instacart, and Walmart are scrambling to build their own ad businesses, and hiring top talent to do so.
- Read more: See the 30-page leaked pitch deck that reveals Macy's big push into advertising
- 4 ways that Walmart, Instacart, and Target are copying Amazon to build billion-dollar ad businesses
- Albertsons is ditching its longtime advertising partner to build an ad business internally. A top exec describes how it'll work.
- Walmart is going after Amazon's ad business — advertisers who control millions name 6 things it needs to do to win their budgets
- How eBay is trying to overhaul its advertising business to be more like Amazon and Walmart
- Walmart unleashes a crucial new weapon to grab advertising budget from Amazon, but it's still lagging behind
- Amazon, Walmart, and Instacart are vying for advertising dollars — here's exactly how much they charge for ads
- Experts lay out how Instacart, Walmart, and other retail ad sellers can take on Amazon in digital advertising
- Uber just hired a top Amazon advertising exec. Here are 45 other big hires that show how it and other companies are warring for advertising dollars
Amazon is tough for advertisers to navigate
Marketers have complained that Amazon is tough to navigate. Amazon said its complex approach is by design, but has rolled out tools to make it easier for marketers to buy and measure ads. Nonetheless, its structure has spawned a cottage industry of firms that specialize in helping marketers navigate the site.
- Read more: Meet 18 firms solving companies' giant problems selling and advertising on Amazon
- Amazon is breeding a new crop of marketing startups, and investors are buying in
- Marketers say Amazon's advertising business is difficult to navigate. Here's why the company thinks the 'chaotic' structure actually makes sense.
- The complete guide to hiring an Amazon agency
- Amazon started showing a favored metric for advertisers this month, making it easier for large brands to compare ad efficiency against Google and Facebook
- Amazon is rolling out a tool that shows just how much Google and Facebook ads drive people to do their shopping on the e-commerce site
How to get a job at Amazon
Amazon is consistently looking for advertising talent, but its tough interviewing process and particular culture can make it hard for outsiders to break into the company.
We talked to insiders about how to ace the interview process.
- Read more: Amazon is known for its ruthless interviewing process. We talked to insiders about how to get a job there.
- Amazon insiders explain the company's unique 'loop' interview system and how it's the ultimate test of whether someone will be a cultural fit
- Amazon is coming for Madison Avenue's talent, and it could be another blow to embattled agencies and ad-tech companies
from Business Insider https://ift.tt/vKudDL6
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