Formerly known as Amazon Marketing Services (AMS), Amazon Advertisement was launched in 2012 as a service delivery that works in a similar way to Google Pay-Per-Click ads, which only requires sellers to pay when shoppers click on ads irrespective of whether or not the item is sold.
As a business owner, the first thing that often comes to mind is income, but how beneficial do you imagine this service can be? Well, Amazon is an e-commerce store that has seen itself through the odd days of business by transforming from a store to a large marketing platform.
In 2018, this marketing platform made $10 billion from Amazon advertisements. $19 billion in 2020 and 31.16 billion U.S. dollars revenue generated through advertising sales in 2021. This figure is expected to further grow its reach.
However, all this is generated via the three main types of advertisement, which are Headlines, Products, and Sponsored. In this article, we will outline the statistical details and facts of Amazon Advertisement.
Key Amazon Advertisement Statistics
- In 2021, Amazon Advertisement generated $31.2 billion.
- Amazon Net Generate Almost $10.4 Billion in US Ad Revenues in 2021.
- In 2023, Amazon Advertisement is expected to reach $38 billion.
- The Average Advertising Cost of Sales on Amazon is 27.59%.
- Over 140,000 third-party sellers exceeded $100,000 in their annual sales.
Top Amazon Advertisement Statistics and Facts
How Much Does Amazon Make Off Advertising in 2021?
Amazon Advertisement doubles the strength of Amazon’s revenue, surpassing that of its physical stores, and is more substantial than other services of the marketing platform like subscription services. This unit grew year on year, having been private about the company spreading its arm to invest in advertising.
Amazon revealed its first statistics in 2018 to have generated $10 billion in ad revenue in that year. Rapidly developing forward to 2020, sees a figure of approximately $19 billion, therefore prevailing the worth its advertising segment had emerged.
In 2021, by outclassing major rivals like Microsoft, the generated reach was $31.2 billion, with fourth-quarter sales increasing to 32%, according to the retailer’s fourth-quarter earnings statement.
What is the Demographic of Amazon Advertisement?
In Accordance with the Amazon buyers demographic, 64% of the sellers are males while 36% are females.
While 39 years has been seen to be the most common seller’s age. A study by JungleScout and Serpwatch reports that 58% of all sellers on Amazon are between 25 and 44 years old.
By survey, 49% of all Amazon sellers live in the United States, 7% live in China, the UK, and Canada, respectively, and 5% in India. The 25% left are located in both English and non-English-speaking countries.
[Sources: Jungle Scout , Serpwatch]
How Much Does Amazon Spend on Advertisement Globally in 2021?
Advertising has been one major upfront in Amazon even though it hasn't generated hugely compared to Amazon web. As the e-commerce marketplace continues to grow globally, so does the B2C e-commerce, which has cut across diversified stores and marketing platforms.
Looking from 2014, Amazon's annual advertising and other promotional costs have increased from its initial 3.3 billion. This marketing platform had and still generating revenue from Ads. However, just as they add up to their revenue, they are also recorded to spend on Ads too.
In 2021, the online retailer's advertisement spending amounted to $16.9 billion, in comparison to the $10.9 billion pulled in from 2020 in previous years.
How Much Does Amazon Spend on Advertisement in the US in 2021?
As an e-commerce marketplace, Amazon has kickstarted and visually diversified all sales types within its ecosystem. Its ads unit has seen lots of big businesses keying into it as well as small ones, and the success rate of ads has brought in more sellers. This is because as they generate profits, they spend to reach out more.
In 2020, Amazon’s ad spending rose by over 50% in the United States. The e-commerce company consolidated its position as the largest U.S. advertiser in terms of spending for the third year-on-year. The online retailer put in around $6.8 billion in advertising in the U.S. market. 2021 saw $10.4 billion spent on advertising in the United States.
[Sources: Statista, Jungle topp]
What is the Pay-Per-Click Daily Impression on Amazon Advertising?
Amazon Advertising has its own metrics used to assess performance which, if not understood, usage will look tricky. An impression, sometimes also called a view or an ad view refers to the time an ad is viewed by an Amazon customer, regardless of whether or not the ad was clicked. Ads are very crucial in determining your targeted growth.
Growth in organic traffic needs to kickoff via paid ads to uplift the weight of the impression your product gets. With respect to 2020 data, the average number of daily impressions per day was 101,265.
However, this data reversed excruciatingly in 2021. Amazon’s average daily ad impression was between 40,000 to 60,000 in 2021.
[Sources: Amazon Ads, Adbadger]
What is the Average Click-Through-Rate on Amazon Advertisement?
Click-Through-Rate (CTR) and ad impression work hand-in-hand. Good CTR comes with impressive ad content to go by. That's why it's very crucial to create a solid eye-catching impression to get you going, and this starts right from optimizing your keyword, and product listing, among others.
CTR tells the total number of clicks your product advertisement gets. Not getting more CTR means either your product ads aren't intriguing enough for a call-to-action, or it meets no interest. The average CTR on Amazon Advertising is 0.41%.
[Source: Advertisement badger]
What is the Average Cost-Per-Click on Amazon Advertisement?
Amazon PPC is used for bidding keywords, completely competitive more than what the next highest bidder is willing to pay for that keyword. What you set in defines your CPC. If you have limited flexibility in your target, it will affect where you set your CPC. Taking part in an advertising campaign, you usually want to know how much it will cost.
Generally, the average rate differs as there are factors that determine the rate. However, a lower CPC means a higher ROI. As of 2020, an average click was $0.71. There was an increase in 2021 to $0.89 for every click or cost-per-click on their advertisement.
How Much Does Amazon Spend on Advertising in 2020?
Amazon Advertisement has evolved and grown over time. Its record has not speak differently as the main target is to have a massive increase with good flexibility that set it out among others. While advertising sellers’ products, it also handles the package delivery, depending on how you set ad you're using and as well how you set the features to work for you.
Records by Statista have shown that in 2018, Amazon was ranked among the leading advertisers in the United States with a measured median spend of approximately 1.84 billion. Amazon's annual advertising costs amounted to $10.9 billion in 2020.
What is Seller's Average Daily Revenue on Amazon Advertisement?
Sellers have taken advantage of leveraging this marketing platform when it comes to showcasing their products, of which the result has been very encouraging. Many have been said to hit it big here, but only when you understand and know how to come correct with its advertising interface.
The average Amazon seller earns $987.77 per day from their Pay-Per-Click advertising campaigns. This figure includes several deductions, discounts, refunds, and as well returns.
Also, you will need to remove other costs to determine your net income. To increase this metric, you need to work more vigorously on the ad impressions, clicks, and conversion rate often to keep the retailer-consumer network engaging and still make sales.
[Source: Influencer Marketing Hub]
What was the Expected Revenue Reach of Amazon Digital Advertisement in 2021?
As technology evolves, so do the e-commerce marketing platforms that choose to advance with it. Amazon is a very large dissimilar marketplace and as such, how they manage within their ecosystem defines their outstanding growth and massive revenues.
In terms of revenue attained, on trying to rival its leads like Google and Facebook, sees Amazon’s US digital ad revenues rise by 55.5% over the year, representing 11.6% of the digital advertising market.
However, Amazon’s US digital ad revenues will reach the scale of $24.47 billion in 2021. And is expected to account for a 14.6% increase in the market in 2023.
[Source: Insider Intelligence]
What is the Global Growth of Amazon Advertisement Sales in 2021?
Advertisement in marketing is like a dragon of several heads, which gets off at any time whenever needs arise. The revenue Amazon generated providing advertising services increased 58% in 2021, with a value of $19.8 billion reported in 2020.
Amazon reported $31.16 billion in revenue generated through advertising sales in the proceeding year. But a year earlier, the figure was over 11 billion lower. According to early 2021 estimates, Amazon accounted for close to 9% of total digital ad spending worldwide that year.
What is the Average Daily Click Per User on Amazon Advertisement?
Daily clicks are the total number of clicks on your ads daily. As a seller on Amazon, the volume of clicks matters in order to know if your product visibility is felt on the marketing platform. Moreso, if, as a seller, your clicks have no good number to go by, your products is soon to be replaced by that of favoring competitors.
One thing you need to understand here is that there are over 600 million products on Amazon, meaning that the competition is very high. Your products’ high number of impressions, set it up for more clicks.
Therefore, advertisement should be prioritized and not tossed off. However, the average daily clicks on Amazon ads is 382 per user.
How Much Does a User Spend on Amazon Advertisement Daily?
On Amazon, advertising is the technique a seller can utilize to stand out from the competition on the search engine. Investing in PPC campaigns not only generates traffic in the short run but also improves a product’s organic ranking in the long run. If you’re just starting out, it can be less clear to square up how much you should spend on advertising daily.
The ascending move is to start with an automatic sponsored product campaign with a competitive bid but with minimal funds, when ad progression is positive performance-wise, begin to optimize the ad, and more funds can be put in once ad optimization is successful.
Therefore, the average Amazon seller spends $268.21 per day on advertisements.
[Source: Influencer Marketing Hub]
What is the Average Cost on Sale on Amazon Advertisement?
Advertising Cost of Sales (ACOS) tells you how much ad spend you get for every $1 revenue earned. This is a simple metric to tell you how profitable your Ad campaigns are. To calculate this, simply divide your total ad spend by the number of generated sales.
Mind you, ACOS varies depending on your products, and profit targets i.e. total advertisement spend divided by total sales. For instance, if your ACOS is 25%, then you’re spending $0.25 on ads to make $1.00 in sales. In addition, the Average Cost of Sales on Amazon Advertisements is currently 27.17%.
[Sources: Adbadger, Marketing Hub]
How Much did Retailers Invested in U.S Amazon Advertisement in 2021?
The e-commerce company strengthening its position as the largest U.S. advertiser in terms of spending for the third year on year. Amazon’s advertising expenditure skyrocketed by more than 50% in the United States compared to 2020 statistical facts. In 2021, online retailers invested around $6.8 billion in advertising in the U.S. market that year.
Retailer ads have not experienced a major drop down since using Amazon ads. More than 100,000 dollars have been made in sales by 140,000 sellers. Those brands that haven't made up to this income are either struggling starters or trying to keep pace soon in no time.
What is the Average Money Spent Daily Per User on Amazon Advertisement?
Daily Ad spending can be measured in various ways. It could either be keyword-based cost or by ad groups, depending on the perceptive you’re seeking. Most times what a seller is willing to spend on ads determines the product return on investment. Impressive ads don't fall off wrongly or rather fail to generate income, instead it triggers a call-to-action.
The average Amazon seller spends $268.71 per day on ads. It can be confusing for a starter to understand how much to put into ads on daily basis. However, the most productive move is to start with a pocket-friendly cost for an automatic sponsored product campaign with a competitive bid.
[Sources: Shopping Feed, Advertising Badger]
How Much Has Amazon Advertisement Business Grow?
It will be a continuous cliche if we want to keep pointing out how much Amazon’s marketplace has grown and as well its advertising arm. Expectations had been set and achieved with huge value. Amazon’s advertising business has rapidly taken off than expected.
In 2021, the company accomplished about $31.2 billion in advertising revenue worldwide. The value doubled more than two previous years. Amazon reported $12.6 billion in 2020, generated via sales advertising. In accordance with estimated reach, the online retailer is predicted to keep strengthening every line in the advertising industry.
Reviews show that by 2026, Amazon might have a share of 13% of the digital advertising revenue worldwide, against 8% in 2020.
How Many Sellers are Joining Amazon Advertisement Daily ?
This marketplace is a huge one that has seen many through becoming a CEO of their own brand with ease. Having an idea is a step, developing this idea brings it to life, but how do you go about keeping it alive to flourish is often the issue giving a lot of headaches. This has become easy in 2012 when Amazon advertisement was launched.
Globally, there are over 2 million small and midsize third-party businesses selling on Amazon.
In 2020, Amazon invested $18 billion in selling partner success. Investments can include the cost of products, Amazon storage, seller fees, and advertising budgets. In addition, close to 3,700 new sellers join Amazon every day, hence, boosting the advertising interface.
[Source: Jungle Scout, Edesk]
What Country Spends the Most on Amazon Advertisement?
Amazon has invested way more on advertising when outlined with its rivals. And with the look of its booming system, it is not surprising if it become the all-time advertiser in the history of e-commerce. The e-commerce giant stated that advertising and other promotional costs to market products and services suddenly grow $6 billion, or 55%.
The US is Amazon's biggest market, and as such advertising is more invested in the US. In terms of sales, it is recorded to have $314 billion, Germany is the next biggest having $37 billion, the UK generates $32 billion, Japan $23 billion, and the rest of the world $64 billion.
What is Percentage of Customers that Click on Advertisement Linking to Amazon Products?
Amazon Affiliate has also been a good factor that enriches Amazon well. In the annual report on campaignasia.com, it is stated the e-commerce giant directs customers to its stores primarily through a number of marketing channels, such as sponsored search, social and online advertising, third-party customer referrals, television advertising, and other initiatives.
According to Feedvisor and Marketing Dive, almost 73% of daily or near daily online shoppers have clicked on an Amazon product advertisement while browsing the web, while 83% purchased the product, and 60% said the ads were helpful. When browsing Amazon, 76% of daily Amazon shoppers have clicked on a product advertisement.
[Source: Marketing Dive, Feedvisor]
What Company Spends the Most on Amazon Advertisement?
Leading Amazon advertisers in the U.S. 2020, are arranged below by statistical facts in legitimacy to 2020 survey by Statista.
Briefly, ad spends in 2020, note out car insurance company GEICO to be the largest advertiser on Amazon in the United States, over-riding Unilever, and Procter & Gamble, which used to be the world’s top advertisers.
|Here are the Top 10 Leading Amazon Advertisers in the U.S. By Ad Spend|
|Categories||Ad Spend in Dollars|
|Procter & Gamble||3.64|
|American Express Company||2.51|
|The Coca-Cola Company||1.98|
How Long Does it Take to Start Getting ROI as a Seller Using Amazon Advertising?
Profitability is a core target for every business, but, as a starter, more work is said to be done to foster this and get your business milking. Even though generating profit is not the main goal in the first year, some sellers still pulled-out something.
As a starter, 2019 and 2020 research reviewed that 58% of sellers were recorded to make an added profit to their invested fund. Following the breakdown, 14% said they made a profit within 3 months as a seller, 17% was 3-6 months, and 27% within 6-1year.
In 2021 prior to 2022, it surged to 64%, with 20% of respondents said to profit in their first year using Amazon advertising in 3 months, 23% was within 6-1year, 16% 1-2years and 4% was over 2-years.
[Source: Amazon Advertising]
What is the Percentage of Amazon Sellers that Use Sponsored Brand Advertisement?
Advertisers who used a combination of Sponsored Brands video, Store spotlight, and custom image ad formats saw a 5.5% increase in Return on Ad Spend (ROAS) compared to advertisers using just one Sponsored Brands Ad preset specification.
Also, Advertisers who used combination of Sponsored Brands custom image and Store spotlight ad formats saw a 57.8% increase in conversion rate compared to advertisers leveraging just one Sponsored Brands Ad preset.
In addition, Advertisers who used the Sponsored Brands video Ad format saw a 108.1% rise in click-through rate (CTR) compared to advertisers only using the Sponsored Brands product collection Ad specified format.
[Source: Amazon Ads]
What is the Percentage of Amazon Advertisements that Have a Low Click Through Rate?
The CTR metric is a very important one if you truly want to generate income as a seller. Content they say is the life-wire of business, if so, just imagine the negative toll zero captivating content can stir. Every advertisement is garnered towards a target goal. More reason why your advertising content should be worthwhile is to avoid a low click rate.
A low click-through rate means that consumers don’t find the ad interesting and hooking, hence did not spend time on it. With millions of sellers using Amazon advertising, it can be hard to stand out if your ad is not well structured. By research results, 41% of Amazon ads have experienced a low click-through-rate.
What is the Percentage of Amazon Advertisement Types Used by U.S Retailers in 2021?
There are mainly three types of ads to trade on while considering Amazon Advertisement and each has its peculiar features to go by. Every seller has what works for them irrespective of the planned techniques drafted out.
In accordance with survey conducted among brands, advertising on Amazon in the US between December 2020 and January 2021 sees, 61% of respondents saying they utilized sponsored products ads, 54% goes with sponsored brands and sponsored display, while Amazon digital signal processing (DSP) was used by 49 percent of respondents.
How Much Does Retailers Spend Monthly on Amazon Advertisement in 2021?
Advertisements foster good brand click-through rates, thereby generating more revenue but, without funding an advertisement can not come to play. Amazon ads have been the positive breath of millions of sellers worldwide. Many innovate their business idea knowing they have a platform to sell stress-free irrespective of their location.
And that has recorded tons of individuals becoming business owners. With respect to a survey conducted among retailers in the United States between December 2020 and January 2021, 61% of respondents said they spend 40 to 80 thousand U.S dollars on Amazon advertising, while 24 percent said they spend $80 thousand on Amazon advertising.
What Amazon Advertisement Type Have the Highest Return on Ads Spend (ROAS) in 2021?
The core value and goal of any advertisement is to pull in sales, reach out to more target buyers and also expand the brand selling revenues. From December 2020 to January 2021, a statistical survey was carried out among brands of different niches regarding the Amazon advertising categories that performed well in ad return in the US.
The result was gathered in accordance with respondents’ perceived experiences. With respect to the survey, 56% of respondents said that sponsored products generated the highest return on advertising spending (ROAS). 53% of respondents said sponsored brands generated the highest ROAS, while 51% cited Amazon Demand Side Platform (DSP).
What Amazon Brand Type Have the Average Return on Ads Spend (ROAS) in 2021?
As stated before, every brand has its different advertisement format of interest. But if not carefully chosen can result in more spending and less return on investment (ROI).
In accordance with the survey carried out in December 2020 and January 2021, between US several brands on their take-home advertising on Amazon, 51% of third-party brands (3P) – functioning directly as a retailer and selling directly to buyers through the marketplace – said they experienced a return of 7x or more, while 31% of first-party brands (1P) – functioning as wholesale suppliers with the marketplace functioning as a retailer – said they also experienced a return of 7x or more.
What Are the Retailers’ Goals for Amazon Advertisement in 2021?
Be you a seller or rather manufacturer, there's always a goal set out to achieve that motivates you behind the scene to initiate a business. And, businesses in the US are no exception. Between December 2020 and January 2021, a survey was conducted among US retailers on why they spend on Amazon Advertisements.
By percentage, 68% of respondents said that one of their goals for advertising on Amazon was that of driving brand awareness. 65% of respondents stated their goal is to acquire new customers, 54% said they target to acquire market share over their competitors while 60% said they target to drive sales.
What is the Expected Growth Rate of Amazon Advertisement by 2023?
Amazon advertisement is said to surpass many big names in the e-commerce world of business. Although it came third after Google and Facebook, the marketing platform is the go-to place for millions of brands across the globe. Having over 600 million products in store, Amazon Ads enjoyed a massive 56% growth rate from 2020 to 2021.
The company has expanded from about $20 billion to $31 billion in sales. That's a skyrocketing pace to enable your interest in mind as a seller or one trying out a new brand. Looking forward to the market value. The company is expected to reach $38 billion in its Ads growth by 2023.
[Sources: The Street, Statista]
What is the Expected Amazon Advertisement Revenue to be Generated Globally by 2026?
In 2021, Amazon was reported to have generated $31.16 billion in revenue through advertising. A year earlier, the figure was lesser in billions. Having built up in high roots, the figure is not expected to slow down but rather further grow to reach $64.3 billion by 2026. The online retailer is responsible for fairly close to 6% of the global advertising revenue.
There is no doubt, just as with other advisement services, the Amazon Advertisement has come to stay. It is one of the services through which you can grow your brand awareness and generate more sales provided you know how to make use of it.
From the above, you can see a good number of impressive statistics about the service. And with the plans Amazon has for this service, you can be assured that it will only grow in the future as Amazon grows.