The marketer has cut annual ad and promotion spending four times—in 2020 amid the pandemic and back in 2001, 2002 and 2003 in the wake of the dot-com bubble.
The company had double-digit percentage increases in ad and promotion spending every year from 2004 through 2019, and again in 2021. Last year’s 55% jump was the biggest percentage increase since 2011.
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So, how does Amazon pay for all of this advertising? It’s amassed a cache of cash: Worldwide net sales increased 22% to $470 billion in 2021. And the company has more money flowing in, as it is raising the annual Prime membership fee in the U.S. by $20, to $139, the first increase since 2018.
Since Amazon opened its online bookstore in 1995, the company has pumped $75 billion into advertising and promotion (3.4% of sales) and registered $2.2 trillion in net sales, according to Ad Age Datacenter.
Amazon scored double-digit percentage growth in net sales every year since 2000 (and triple-digit growth before that).
More than half of Amazon’s ad and promotion spending (51.9%) and net sales (51.7%) came in the past three years.