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Amazon is, undoubtedly, the world’s largest and most popular eCommerce platform.

If you are not selling on Amazon yet, you are missing a chance to make great sales and reach more potential customers.

Advertising is the best way for any serious Amazon seller to stand out on the platform. Likewise, investing in PPC campaigns creates traffic in the short term while also improving your business’s organic ranking in the long term.

However, simply spending money on advertising is insufficient. A savvy seller would seek to maximize ad budgets.

Moreover, you cannot do so if you don’t first understand the important Amazon advertising statistics.

These statistics will help you know if trying out Amazon advertising is a good idea. You will also learn about the latest trends and strategies to help boost results.

General Amazon Statistics

1. Amazon accounted for over 37.6% of the U.S. retail eCommerce market in 2023. The e-commerce giant generated over $356 billion in 2022 in its U.S. branch. (source)

Amazon's Market Share in the U.S. Retail Ecommerce Market

2. Between September 2022 and September 30 2023, Amazon made over $554.03 billion in revenue. (source)

3. In 2022, Amazon’s net sales revenue was valued at $514 billion. (source)

Amazon’s Annual Net Sales Revenue in 2022

4. Amazon’s ad revenue in the U.S. was worth $12.06 billion in Q3 2023. It was a 26.3% increase from that of the previous year. (source)

5. In April 2023, Amazon’s combined desktop and mobile visits amounted to 2.2 billion. This makes Amazon the most visited eCommerce space in the U.S. (source)

6. Amazon’s ad revenue is said to be growing 5× faster than Google’s ad revenue. (source)

7. Amazon’s brand value declined to $469 billion in 2023 from $705.65 billion in 2022. (source)

8. According to CNBC, Amazon is expected to surpass Walmart as the number 1 retailer in the U.S. (source)

9. Amazon sales are so large that it ships over 2.5 billion orders yearly. This is close to the orders FedEx ships, which is 3 billion. (source)

10. The traffic on Amazon is so heavy that the platform makes over $837,000 every minute. (source)

10. Additionally, Amazon reported an annual net income of $33.36 billion. This increased from the $21.3 billion income from the previous year. (source)

11. The company’s founder and former CEO, Jeff Bezos, has an estimated net worth of $211 billion. (source)

Latest Amazon Advertising Statistics

12. Amazon has a brand value of over $350 billion as of early 2022. Thus making it the second most valuable brand worldwide. Amazon comes second after Apple, with a brand value worth over $355.1 billion. (source)

13. In 2021, Amazon’s ad revenue (worldwide) was worth $31.16 billion. This revenue made Amazon responsible for about 8% of the global digital advertising revenue. The percentage is expected to increase to 13% by 2026. (source)

14. Amazon’s net digital advertising revenue in the U.S. was worth about $24.47 billion in 2021. The amount is expected to increase by 2023, reaching about $39.45 billion. (source)

15. 61% of surveyed respondents (retailers) say they spend between $40,000 to $80,000 on Amazon ads monthly. However, 24% said they spent above $80,000. (source)

16. The cost per mile (CPM) for Amazon Ads is $2.43. (source)

17. Amazon has about 233.46 million visitors every month. (source)

Most popular multi-platform Web properties

18. Amazon ads have a growth rate of 18%. (source)

19. Amazon accounts for 11.3% of the total digital ad revenue in the U.S. (source)

20. 57% of online shoppers report that Amazon is their top source of buying inspiration. (source)

21. About 31% of U.S. Amazon users agree that sponsored ads on the online platform are very helpful. However, although 11% of surveyed respondents say that the ads “align with their shopping habits,” about 1 in every five respondents say they find the ads very distracting. (source)

22. The U.S Amazon ads have an average cost per click (CPC) of $1.2 (source)

23. In 2022, Amazon’s global marketing spending amounted to about $42.2 billion. (source)

24. Amazon’s advertising average click-through rate is 0.41%. (source)

25. 56% of surveyed retailers cited “driving brand awareness” as their primary goal for advertising on Amazon. Additionally, 61% noted “acquiring new customers” as their primary goal, and 53% said they wanted to “drive sales“.(source)

26. Amazon’s ad’s average cost of sale (ACOS) is 27.17%. (source)

27. Amazon’s global advertising cost per click is $0.75 for sponsored product ads. In the U.S., it is $0.87. (source)

28. In 2021, the retailers’ revenue from Sponsored Product Ads increased by 23%. (source)

29. Amazon’s sponsored product ads cost less than Google and Facebook ads, with 68% and 44% less, respectively. (source)

Amazon's sponsored product ads cost less than Google and Facebook ads, with 68 percent and 44 percent less, respectively

30. In 2021, over 1 million new sellers joined Amazon. (source)

31. The total number of sellers in the North American Amazon Marketplace (which includes the U.S., Canada, and Mexico) was more than 3 million. However, Europe just had 1.4 million sellers. (source)

32. 63% of surveyed consumers say they begin searching on Amazon when shopping online. (source)

33. The average CPC on Amazon in 2023 is $0.97, and the lowest CPC was $0.80 in February. (source)

34. Amazon’s 2021 annual revenue for third-party sellers was worth $103.4 billion. This was a 22% year-on-year (YoY) increase. (source)

35. About 46% of Amazon sellers find managing their advertising budget and strategy challenging. (source)

36. According to 79% of surveyed consumers, Sponsored Products ads in the search results are Amazon’s most appealing ad types. (source)

37. The U.S. Amazon marketplace is the region that spends the most on advertising, with 82%. Additionally, Sponsored Products ads account for most of Amazon’s advertising spending. (source)

38. About 1 in every 5 Amazon sellers find it quite challenging to measure the effectiveness of their marketing strategies. (source)

39. About one-third of Amazon marketers are not confident they are reaching the right audience for their business. (source)

40. In 2022, Amazon’s global ad revenue reached $38 billion, nearly double the 2020 result. (source)

Amazon Prime Day Statistics

41. Black Friday is the biggest shopping online event that drives the most significant sales on Amazon U.S. The second largest online shopping event is Amazon Prime Day. (source)

42. Prime Day Sales revenue in 2022 reached a new record of $12 billion. (source)

43. There are over 200 million Amazon Prime members worldwide. And it is only these members that take part in the Amazon Prime Day event. (source)

44. During the 2022 edition of Amazon Prime Day, SMBs generated about $3 billion in sales. (source)

45. Advertising spending for Amazon Prime Day in the U.S. increased by 93.6%. (source)

46. In 2023, prime members shopped more than 375 million items worldwide, saving more than $2.5 billion in deals across the Amazon store. (source)

47. Small business products like True Classic and TUSHY increased their average daily sales by 18× (source)

48. The best-selling products across Amazon were Alexa-enabled devices. (source)

49. Amazon Live Prime Day Streams had more than 100 million views in the U.S and India (source)

50. Vendors who partook in Prime Day activities experienced a 10× increase in daily buys with prime orders and saw an 8× increase in daily revenue when compared to before the event. (source)

Amazon Advertising Trends and Strategies For 2024

Amazon has successfully become one of the top advertising agencies in the United States. It is expected that 14.6% of the market in 2023 will account for Amazon. The current and future market growth increase lies in consumers’ hands.

US net digital Ad revenues at amazon 2019 to 2023

Source: eMarketer

With the shift in consumer behavior, adjustments ought to be made to advertising trends and strategies. The behavior of Amazon shoppers calls for a continuous understanding of advertising trends and strategies.

Therefore, advertising in 2022 calls for the knowledge and application of these trends to meet the ever-growing consumer behavior. Ideally, you remain one step ahead of your competitors and can fit in and make more sales.

When effectively carried out, Amazon ads have proven to generate significant revenue. Using relevant ads on Amazon creates a connection between businesses and potential clients. The relevancy of each ad is dependent on consumer behavior.

The following trends provide insight and understanding of effective advertising between your business and Amazon.

1. Social Media Advertising

Social media marketing is still growing and is not stopping anytime soon. For example, it is easier for Amazon sellers to use sites such as Facebook, Instagram, and Twitter.

Also, Statista records that social media advertising spending is projected to reach $255.8 billion in 2028.

If you are not implementing social media as part of your Amazon advertising strategy, you miss out on many areas.

Marketers use social media to create brand awareness and boost engagement on their Amazon ads. These ads can help you get your products in front of existing and potential customers.

Social media provides opportunities to advertise your products and create content that drives engagement.

These contents follow trends, draw potential customers in, convert leads, and increase customer lifetime value.

Social media ads can target audiences based on gender, age, demographics, and other data-driven targets.

2. Video Advertising

Videos are still growing more popular than images and texts. The typical viewer spends 102 hours per month watching ad-supported content on Amazon.

These ads are often known as Amazon OTT Ads or Amazon “over-the-top” Ads. Using videos on an online selling platform like Amazon makes room for massive engagement.

Amazon ads help marketers create video campaigns to create brand awareness and reach audiences.

Two-thirds of customers would rather watch a video about products and services than read about them, strengthening the power of video advertising.

Marketers are using more video content to attract more audiences. Long-form videos like live-streaming ads can speak to your audience. You can also create video ads yourself to help with brand presence.

These videos can be how-to-videos, product walkthroughs, or testimonials and can be shared on third-party sites such as social media.

Source: Amazon Ads

3. Audio Ads

Over one-third of United States consumers have smart speakers, and 85% use them to play audio in a week. Moreover, the percentage is expected to grow over the next few years.

Audio ads are screen-free adverts; they can connect with your audience regardless of their activity. So your audience can be getting ready in the morning, working from home, preparing meals, or hosting friends and family, and your screen-free advert comes on.

These ads, which are ten to thirty seconds of audio, frequently play during content breaks.

For example, imagine listening to Alexa play you some songs and an audio ad about gift cards or electronics comes on during the break. This implies that you can tell your message with premium audio content.

Interactive audio ads allow listeners to respond to an Alexa call-to-action within the ad.

4. More Display Advertising

Advertisers who use Sponsored Display audiences see up to 82% of their sales driven by new-to-brand customers.

Display advertisements are online advertisements with a combination of text and visual elements and a call to action that takes a viewer to a landing page. Display advertising is often found at the top, sides, or occasionally amid a website’s content.

Display ads are expected to adhere to the following size guidelines:

Medium rectangle: 300 x 250 px
Leaderboard: 728 x 90 px
Wide skyscraper: 160 x 600 px
Large rectangle: 300 x 600 px
Mobile leaderboard: 320 x 50 – 640 x 100 pixels @2X (required).

Amazon display advertisements can come in either sponsored display or Amazon Demand-size-Platform.

The sponsored display is a self-service display that helps with increasing awareness for brands and products and then drives purchases to your Amazon business,

The sponsored display can connect with customers looking at relevant products and categories on Amazon that are complementary to yours.

You can also use sponsored audiences to access custom-built audiences that let advertisers introduce new products, engage new audiences, and remarket at scale.

Amazon Demand Side Platform (DSP) lets advertisers programmatically buy display, video, and audio ads on and outside Amazon.

Audiences can be reached using third-party exchanges, Amazon sites and apps, and Amazon Publisher Services.

In addition, it provides insight and performance analytics before and after campaigns at no cost.

Source: Amazon Demand Side Platform

Display ads use CTA (Call to Action) to yield viewers’ best and most effective results. You can use these CTAs: Shop Now, Learn More, Preorder Now, See Details, Watch Now, and many others.

Frequently Asked Questions

1. Who are Amazon’s Biggest Advertisers?

The largest advertiser on Amazon in the United States was the auto insurance provider GEICO, which spent 11.18 million dollars. Next in line are Comcast Corporation and Unilever, with 6.2 million and 6.19 million, respectively.

2. What Advertising Does Amazon Use?

Amazon uses Sponsored Product Ads. Sponsored Brands. Product Display Ads.

3. How Many Types of Amazon Advertising Are There?

Amazon has (and uses) three types of advertising. There are three Amazon advertisements:

– Sponsored Brand Ads

– Sponsored Product Ads

– Product Display Ads

Conclusion

Amazon witnesses a surge of buyers and sellers yearly. As the number increases, the cost of product promotion through ads keeps increasing. Set triggers for when to stop advertising for your hero ASINs and start advertising for your other top ASINs.

I’m sure you don’t want to spend money running an advert for a product that is out of stock. Also, control your spending with bid multipliers for each day of the week.

Never forget the basics of Amazon advertising, such as product details, image quality, keywords, price, reviews, and keywords.

Amazon’s Advertising statistics, trends and strategies will keep evolving. Therefore, brands must keep studying the market and be ready to implement any change in trends or strategy.

Amazon advertising statistics passivesecrets

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50 Crucial Amazon Advertising Statistics & Trends For 2024 And Beyond