Amazon—ad spending, facts and profile

Overview Amazon is the world’s second-biggest retailer, behind Walmart. Ad Age Datacenter ranks Amazon as the biggest advertiser in the U.S. and the biggest advertiser in the world. Amazon first appeared in the Ad Age 100 Leading National Advertisers report in June 2011, ranking No. 70. Amazon’s headquarters is in Seattle. Business segments and operations Amazon operates through three segments: See more: Amazon’s business and operations Marketing spending U.S. ad spending: U.S. ad spending figures shown are Ad Age Datacenter’s estimate of Amazon’s U.S. “advertising and other promotional costs.” Amazon displaced Comcast Corp. as the biggest advertiser in the June 2020 ranking of Ad Age Leading National Advertisers based on calendar 2019 spending. Amazon kept the top spot based on estimated spending in calendar years 2020 through 2023. In 29 years since Amazon opened its online bookstore, from 1995 through 2023, Amazon pumped $116 billion (3.5% of sales) into advertising and promotion to generate $3.3 trillion in net sales, according to Ad Age Datacenter. Half of Amazon’s ad and promotion spending and nearly half of net sales came in the three-year period of 2021-2023. Amazon made its debut on Ad Age’s 100 Leading National Advertisers ranking in June 2011 based on estimated U.S. ad and promotion spending in 2010. Amazon ranked as the nation’s 70th-largest U.S. spender in that report based on 2010 estimated U.S. ad spending of $487 million. Worldwide ad spending: Worldwide ad spending figures shown are Amazon’s stated worldwide “advertising and other promotional costs.” Amazon reported worldwide advertising and other promotional costs of $20.3 billion in 2023, down 1.5% from $20.6 billion in 2022. Ad Age Datacenter ranked Amazon as the world’s biggest advertiser in the Ad Age World’s Largest Advertisers 2024 report based on 2023 spending. Amazon also ranked as the world’s top advertiser based on 2022 spending and 2021 spending. Amazon ranked as the world’s second-biggest advertiser based on 2020 spending, behind Procter & Gamble Co. Amazon ranked as the world’s biggest advertiser based on 2019 spending, which marked its first time in the top spot. Amazon disclosed the following worldwide “sales and marketing costs” (referred to as “marketing costs” in filings prior to 2023): 2023: $44.370 billion (7.72% of net sales) 2022: $42.238 billion (8.22%) 2021: $32.551 billion (6.93%) 2020: $22.008 billion (5.70%) 2019: $18.878 billion (6.73%) 2018: $13.814 billion (5.93%) 2017: $10.069 billion (5.66%) 2016: $7.233 billion (5.32%) 2015: $5.254 billion (4.91%) 2014: $4.332 billion (4.87%) 2013: $3.133 billion (4.21%) 2012: $2.408 billion (3.94%) 2011: $1.630 billion (3.39%) 2010: $1.029 billion (3.01%) 2009: $680 million (2.77%) 2008: $482 million (2.51%) The 10-K for the year ended December 2023 said: “The increase in sales and marketing costs in absolute dollars in 2023, compared to the prior year, is primarily due to increased payroll and related expenses for personnel engaged in marketing and selling activities.” The 10-K for the year ended December 2022 said: “The increase in sales and marketing costs in absolute dollars in 2022, compared to the prior year, is primarily due to increased payroll and related expenses for personnel engaged in marketing and selling activities and higher marketing spend.” The 10-K for the year ended December 2021 said: “The increase in marketing costs in absolute dollars in 2021, compared to the prior year, is primarily due to higher marketing spend, which was constrained in 2020 in response to COVID-19, and increased payroll and related expenses for personnel engaged in marketing and selling activities.” Worldwide advertising and promotional costs as percentage of worldwide sales and marketing costs (formerly known as marketing costs): 2023: 45.8% 2022: 48.8% 2021: 51.9% 2020: 49.5% 2019: 58.3% 2018: 59.4% 2017: 62.6% 2016: 69.1% 2015: 72.3% 2014: 76.2% 2013: 76.6% 2012: 83.1% 2011: 85.9% 2010: 86.5% 2009: 87.2% 2008: 87.1% The 10-K for the year ended December 2023 said: “Sales and marketing costs include advertising and payroll and related expenses for personnel engaged in marketing and selling activities, including sales commissions related to AWS. “We direct customers to our stores primarily through a number of marketing channels, such as our sponsored search, social and online advertising, third-party customer referrals, television advertising, and other initiatives. “Our marketing costs are largely variable, based on growth in sales and changes in rates. To the extent there is increased or decreased competition for these traffic sources, or to the extent our mix of these channels shifts, we would expect to see a corresponding change in our marketing costs.” Links to Ad Age’s advertiser rankings Latest rankings: U.S. The Ad Age Leading National Advertisers 2024 ranking was released Oct. 28, 2024. Ad Age Leading National Advertisers 2024 U.S. ad spending, rankings, analysis and profiles for the biggest marketers Click here Past rankings: U.S. Ad Age Leading National Advertisers 2023 Ad Age Leading National Advertisers 2022 Latest rankings: worldwide The Ad Age World’s Largest Advertisers 2024 ranking was released Dec. 9, 2024. Ad Age World’s Largest Advertisers 2024 Global ad spending, rankings, analysis and profiles for the biggest marketers Click here Past rankings: worldwide Ad Age World’s Largest Advertisers 2023 Ad Age World’s Largest Advertisers 2022 Financial results Amazon reported 2023 worldwide net sales of $574.8 billion. See more: Amazon financial results Read Amazon’s annual filing Advertising revenue: Amazon is a major media company with surging advertising revenue. Amazon began to break out “advertising services” revenue effective with its fourth-quarter 2021 earnings release and 2021 10-K filing. Amazon disclosed the following “advertising services” net sales: 2023: $46.906 billion 2022: $37.739 billion 2021: $31.160 billion 2020: $19.773 billion 2019: $12.625 billion Amazon previously reported advertising services net sales within its “Other” sales bucket. Amazon reported worldwide “Other” net sales of: 2020: $21.453 billion 2019: $14.085 billion 2018: $10.108 billion 2017: $4.653 billion 2016: $2.950 billion 2015: $1.710 billion 2014: $1.322 billion Amazon Web Services: Amazon in April 2015 began disclosing revenue of Amazon Web Services. The company disclosed worldwide revenue from Amazon Web Services of: 2023: $90.757 billion 2022: $80.096 billion 2021: $62.202 billion 2020: $45.370 billion 2019: $35.026 billion 2018: $25.655 billion 2017: $17.459 billion 2016: $12.219 billion 2015: $7.880 billion 2014: $4.644 billion 2013: $3.108 billion Rankings Amazon ranked as the world’s second-largest retailer (behind Walmart) in the Top 250 ranking based on fiscal 2021 sales in Deloitte’s Global Powers of Retailing 2023 report. Deals and strategic moves IRobot Corp. (terminated): Amazon and iRobot Corp. in January 2024 terminated Amazon’s planned acquisition of iRobot in the wake of regulatory challenges. Amazon in August 2022 had signed a deal to buy iRobot, marketer of Roomba vacuums. Amazon already was iRobot’s largest retailer. One Medical (1Life Healthcare): Amazon in February 2023 bought 1Life Healthcare, which provided primary-care medical services online and through local offices under the One Medical brand. Amazon bought the venture for about $3.5 billion, net of cash acquired. San Francisco-based 1Life Healthcare reported 2021 total net revenue of $623.3 million. It disclosed “advertising costs” of $32,166,000 in 2021; $15,871,000 in 2020; $23,368,000 in 2019; $11,641,000 in 2018; and $7,654,000 in 2017. 1Life Healthcare held its initial public offering in January 2020. MGM Holdings: Amazon in March 2022 bought MGM Holdings for cash consideration of about $6.1 billion, net of cash acquired, the company’s second-biggest acquisition after its 2017 purchase of Whole Foods. In its May 2021 announcement that it was buying MGM, Amazon said: “MGM has nearly a century of filmmaking history and complements the work of Amazon Studios, which has primarily focused on producing TV show programming. Amazon will help preserve MGM’s heritage and catalog of films, and provide customers with greater access to these existing works. Through this acquisition, Amazon would empower MGM to continue to do what they do best: great storytelling.” MGM disclosed worldwide “advertising and marketing costs” of $46.4 million in 2020; $99.3 million in 2019 (before the pandemic); and $75.0 million in 2018. MGM said that spending primarily was for its Epix channel. MGM reported worldwide total revenue of $1.497 billion in 2020; $1.543 billion in 2019; and $1.574 billion in 2018. MGM (Metro-Goldwyn-Mayer) no longer owns a studio lot. Its old back lot in Culver City, California, is now home to Sony/Columbia. Whole Foods Market: Amazon on Aug. 28, 2017, completed a deal announced June 16, 2017, to buy Whole Foods Market, a grocery store chain, in an all-cash transaction valued at about $13.2 billion, net of cash acquired. This was Amazon’s largest-ever acquisition. Amazon kept operating the stores under the Whole Foods name. As of April 2017, Whole Foods operated 461 stores: 440 stores in 42 U.S. states and the District of Columbia; 12 stores in Canada; and nine stores in the U.K. Whole Foods was incorporated in 1978 and opened the first Whole Foods Market store in 1980 in Austin, Texas. Whole Foods disclosed the following ad costs for years ended: Sept. 25, 2016: $96.0 million (0.6% of sales of $15.7 billion) Sept. 27, 2015: $89.0 million (0.6% of sales of $15.4 billion) Sept. 28, 2014: $63.0 million (0.4% of sales of $14.2 billion) Sept. 29, 2013: $56.0 million (0.4% of sales of $12.9 billion) Sept. 30, 2012: $51.3 million (0.4% of sales of $11.7 billion) Sept. 25, 2011: $43.2 million (0.4% of sales of $10.1 billion) Sept. 26, 2010: $37.9 million (0.4% of sales of $9.0 billion) Sept. 27, 2009: $32.9 million (0.4% of sales of $8.0 billion) Sept. 28, 2008: $39.7 million (0.5% of sales of $8.0 billion) Sept. 30, 2007: $33.0 million (0.5% of sales of $6.6 billion) Sept. 24, 2006: $24.0 million (0.4% of sales of $5.6 billion) Sept. 25, 2005: $20.1 million (0.4% of sales of $4.7 billion) Whole Foods’ ad costs shown for 2013 through 2016 are stated “advertising expense.” Ad costs shown for 2005 through 2012 are stated “advertising and marketing expense.” All figures are net after subtracting cooperative advertising money that Whole Foods received from suppliers. Quidsi: Amazon in March 2017 said it was closing Quidsi, a unit that included Diapers.com and Soap.com. Amazon in April 2011 completed its acquisition of Quidsi, parent of e-commerce sites Diapers.com, Soap.com and BeautyBar.com. Amazon in November 2010 had announced an agreement to buy Quidsi for about $500 million in cash plus assumption of about $45 million in debt. Quidsi founder Marc Lore later launched Jet.com, an online retailer that he sold to Walmart in 2016. Walmart shuttered Jet.com in 2020. Amazon in early 2012 bought the casa.com domain name. Amazon’s Quidsi later in 2012 launched Casa.com as a housewares e-commerce site. Other deals and strategic moves: Amazon in July 2022 signed a deal with Just Eat Takeaway.com, a multinational online food delivery venture, to give Amazon Prime members in the U.S. access to Just Eat Takeaway’s Grubhub delivery service. As part of the agreement, Amazon received warrants to buy up to 15% of Grubhub. Amazon has a deal with U.S. retailer Kohl’s Corp. allowing Amazon customers to return purchases to Kohl’s stores. Amazon and Kohl’s first worked together in 2017 to pilot the returns program. The program in July 2019 expanded to all Kohl’s stores across 48 states. Amazon in September 2018 bought PillPack, an online pharmacy, for about $753 million, net of cash acquired. PillPack sold pre-sorted doses of medications delivered to a consumer’s home. PillPack became part of Amazon Pharmacy. Amazon in April 2018 bought Ring, a marketer of video doorbells and other products, for about $839 million, net of cash acquired. Amazon in May 2017 bought Souq Group, an e-commerce company based in Dubai, United Arab Emirates, for about $583 million, net of cash acquired. Amazon in April 2019 rebranded Souq as Amazon.ae. Amazon bought Zappos.com, an online shoe retailer, in the fourth quarter of 2009. Amazon acquired Audible Inc. in 2008. Management and employees Amazon founder Jeff Bezos, who ran the company since it started in 1994, moved to executive chair from chairman-CEO in July 2021. Andrew (Andy) Jassy succeeded Bezos as CEO of Amazon. Before taking that post, Jassy was CEO of Amazon Web Services, which he led since its inception. Jassy joined Amazon in 1997. See more: Amazon management See more: Amazon careers Stock Amazon trades on Nasdaq under ticker AMZN. Amazon made its initial public offering in May 1997. History Amazon.com Inc. was incorporated in 1994 and opened its web store in July 1995. See more about Amazon and its history Ad Age Leading National Advertisers 2024 U.S. ad spending, rankings, analysis and profiles for the biggest marketers Click here

Amazon—ad spending, facts and profile

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