State of the Amazon Seller | 2023
This study of 3,500 entrepreneurs, brands, and businesses explores the current state of selling on Amazon in 2022, with a special focus on small and midsize businesses.Read more chevron_right
In this in-depth report, see how brands and sellers capitalized on Amazon’s ad business and where they spent their ad dollars. We analyzed over 900,000 ad campaigns to share insights on winning advertising strategies.
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Amazon advertising sales more than doubled over the prior two years and accounted for a growing portion of the company’s total net sales.
In 2021, Amazon’s advertising sales generated $31.2 billion in revenue, up from $19.8 billion in 2020 (a 58% increase) and $12.6 billion in 2019 (a 147% increase). With sustained growth, Amazon’s advertising business is increasingly viewed as more of a competitor to those of tech giants Google and Facebook than to those of its ecommerce competitors.
Some sellers experienced reduced returns on their advertising spend, with the most significant differences in Sponsored Brands campaigns.
Across all product price ranges, RoAS declined from 2020 to 2021. The most significant change occurred in products priced under $10; the average 14-day RoAS for those products slipped to $1.54 from $2.41 year-over-year, a decrease of about 36%.
While many ecommerce brands and sellers struggled to manage their advertising strategies and costs, 30% were still increasing their budgets in 2022.
Newer ad products such as Amazon’s demand-side platform (DSP) and Sponsored Display audiences campaigns provided new and innovative ways of reaching potential customers but also added layers of complexity for sellers seeking to optimize their approach to advertising.
Findings in this report are based on Jungle Scout’s ecommerce data collected over a three-year time frame from January 2019 through December 2021, and certain other data reflective of the first three months of 2022, across 14 global marketplaces. It includes 5,000+ distinct brands and 950,000+ unique Amazon advertising campaigns across all key ad media, and primarily represents large ecommerce enterprises.
We invite you to explore Jungle Scout’s 2022 Amazon Advertising Report, and to share, reference, and publish the findings with attribution to “Jungle Scout” and a link to this page.For more information, specific data requests or media assets, or to reach the report’s authors, please contact us at [email protected].
Jungle Scout is the leading all-in-one platform for ecommerce sellers, supporting more than $50 billion in annual Amazon revenue. Founded in 2015 as the first Amazon product research tool, Jungle Scout today features a full suite of best-in-class business management solutions and powerful market intelligence resources to help entrepreneurs and brands manage their ecommerce businesses. Jungle Scout is headquartered in Austin, Texas, and supports 10 global Amazon marketplaces.
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