Jungle Scout’s annual Amazon Advertising Report explores Amazon’s intricate advertising landscape and highlights challenges and opportunities for brands and third-party sellers navigating the platform.
Today, Jungle Scout, the leading all-in-one platform for e-commerce sellers, released its 2023 Amazon Advertising Report, an analysis of Amazon’s $37.7 billion advertising business, the third-largest globally behind Google and Facebook. The report reveals that Amazon sellers are expanding beyond Amazon and diversifying their advertising mix on channels like social media and paid search, with a growing focus on video advertising.
Key insights from the report include:
55% of Amazon sellers and brands embrace new marketing tactics amid shifting consumer preferences.
Amazon’s ad sales growth slowed by roughly 20% between 2021 and 2022, a significant drop from the previous year-over-year growth of 58% in 2021 and 147% in 2020.
Investments in paid search and social media advertising have increased 26% and 15%, for Amazon sellers and brands, respectively, while investments on Amazon and other e-commerce platforms dropped 6%.
Amazon sellers and brands are increasingly turning to social media, with 41% currently using it to market their products and reach new audiences.
Video ad spending for Amazon Live, video ads, and Demand Side Platform increased 150%, 77%, and 60%, respectively.
“Diversifying advertising strategies is crucial for sellers and brands amid economic volatility and evolving consumer preferences,” said Connor Folley, Vice President of Strategy at Jungle Scout. “Social commerce, including TikTok, is gaining popularity, attracting advertisers seeking to target consumers with increased spending power. We’re closely watching new channels like Amazon Live and Aspire, Amazon’s version of social shopping.”
The 2023 Amazon Advertising Report features data from more than 5,000 distinct sellers and brands, including small and medium businesses, e-commerce enterprises, and 950,000 unique Amazon advertising campaigns.