Amazon's ad spend fell £73 million

New Ideas in MarketingEssential news for marketers, summarised by YouGov
February 05, 2021, 2:09 PM GMT+0

The ecommerce giant has reduced its outlay for the first time in 17 years.

One of the biggest advertisers globally, the tech-giant cut its advertising spend by £73 million (around $100 million) in 2020 as the pandemic reduced costs. This is the first time Amazon has reduced ad-spend since 2003 when its overall outlay was around $109 million.

Amazon’s annual report indicated that advertising and other promotional costs were broadly flat at $10.9 billion in 2020, as opposed to $11 billion in 2019. The total marketing costs, including advertising expenses, rose by 17% to $22 billion but dropped as a percentage of net sales.

The company’s annual report further said that Amazon benefitted from “lower spending on marketing channels as a result of Covid-19”. Moreover, the ecommerce giant’s annual sales increased by 37% to $386 billion last year.

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