Professional advertisers need strong partners in times of economic uncertainty. Over the past year, Amazon’s impressive growth has further consolidated the company’s standing as a leader in the advertising space. Having raked in $31 billion in ad revenue in 2021, Amazon is on track for strong growth in 2022 despite the slowing global economy.
Here are some of the reasons advertisers can feel confident in Amazon’s strength as a strategic partner:
Recent SEC Filing Confirm Strength of Amazon’s Advertising Services
Amazon has segmented out its advertising services from other lines of business in recent financial filings. The data shows impressive double-digit growth—even as the economy began to slow in Q4 of 2021:
Data from Amazon.com Fourth Quarter Results Report
Sponsored Product Ads Continue to Show Strengthx
According to Merkle’s quarterly Digital Marketing Report , Amazon’s Sponsored Product ads in 2021 have outperformed Sponsored Brand and Sponsored Display ads in terms of revenue-per-click. Sponsored Product ads also had 75% of ad impressions compared to 17% for Sponsored Brands, and 8% for Sponsored Display. Overall, Sponsored Product ads had about 11% fewer clicks while CPC was down 27% leading to 35% less ad spend with a 12% increase in sales in 2021. Identifying these differences are key in determining budget and advertising strategy. These metrics show plainly to advertisers that Sponsored Product ads are still the foundation for any advertising account.
Amazon is Betting on Itself
Amazon’s recent actions with its own stock demonstrate the confidence the company has in its future growth. In June, the company bought back $10 billion of its own stock—a bold bet on the belief that its shares are undervalued. Furthermore, it executed a 20-for-1 stock split in anticipation of higher share prices. Amazon is clearly willing to invest considerable capital on its near-term success despite the current eco
nomic instability. They are supported in this outlook by investors such as Daniel Loeb who earlier this year asserted that there is an additional “$1 trillion in untapped value” within the company.
Conclusion
These indicators show that Amazon’s advertising platform will only continue to grow and underscore the importance of having a comprehensive Amazon PPC strategy in place. At Sellozo, we’re here to help you navigate Amazon ads for a phenomenal ROI with a low ACoS. Fully managed Amazon PPC services are available.