Amazon spent a record amount of money on ads: Here’s the astonishing amount

The year 2022 has been a year when sales, revenues and values ​​fell for all giant companies and especially “Big Tech”. On the other hand, when we turn the lens to Amazon, we see that the company is spending an incredible amount of advertising. This is actually an interesting situation because Amazon was not very fond of advertisements years ago. So much so that in 2009 Jeff Bezos; “Advertising is the price you pay for having a product that isn’t eye-catching,” he said. In 2022, which we left behind, Amazon became the largest advertiser in the world.

Amazon breaks record in ad spend

Amazon increased its worldwide advertising and promotion spending by 22 percent to $20.6 billion in 2022. The company spent $10.9 billion in 2020. Breaking the record for annual spending in this area, Amazon spent an average of $56 million on each of 365 days. The firm’s advertising expenditures in 2022 accounted for 2 percent of global advertising expenditures. According to Ad Age Datacenter, Amazon has dedicated $95 billion to advertising and promotion since it began operations in 1995 and has generated net sales of $2.7 trillion. Just over half of Amazon’s advertising and promotional spending and net sales have occurred in the past three years.

However, Amazon; It ranks ahead of the biggest advertisers like Alibaba, L’Oreal, P&G, Samsung, LVMH, Nestle and Alphabet (Google). Amazon’s ad spend is more than double that of Google. In fact, the size of Amazon’s advertising expenditures can also be said to be reasonable. Because the company is not an “online bookstore” or retailer as before; a media and technology giant. Amazon includes brands such as Twitch, Prime Video, Alexa, AWS, Fire and Kindle.

For example, Amazon allocated $26 million to a Superbowl ad featuring Scarlett Johanson in 2022. This is the most expensive ad in Superbowl history. Amazon is among Twitter’s biggest advertisers, spending $100 million on Twitter ads. In addition to all of these, Amazon spent $20.6 billion on ads while also generating $38 billion in ad revenue.