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Amazon Marketing Expenses

Amazon’s revenue has grown at a significant rate in recent years and so have its marketing costs. The company spent $42.24 billion on sales and marketing in 2022 compared to $32.55 billion in 2021. Amazon generated more than $500 billion in net revenues in 2022.

Sales and Marketing expenses of Amazon 2004-2022.

Amounts are in millions.

YearMarketing Costs (Millions)
2022$42,238
2021$32,551
2020$22,008
2019$18,878
2018$13,814 
2017$10,069 
2016$7,233 
2015$5,254 
2014$4,332 
2013$3,133 
2012$2,408 
2011$1,630 
2010$1,029 
2009$680 
2008$482 
2007$344 
2006$263 
2005$198 
2004$162 

2021: Amazon’s marketing expenses grew to $32,551 million in 2021 compared to $22,008 million in 2020.

In 2019, the marketing expenses of Amazon grew to $18.9 billion compared to $13.8 billion in 2018, yoy growth of around 37%.

Amazon uses several targeted online marketing channels to drive sales. These channels include sponsored search, third party customer referrals, social and online advertising, television advertising, and other initiatives. Marketing costs of Amazon are  largely variable depending upon growth in sales and rates. Growth in marketing costs in 2018 happened mainly due to the growth in expenses upon marketing and sales personnel.

About Amazon:

Amazon (NASDAQ: AMZN) is the largest ecommerce brand as well as one of the leading cloud services brand. The company which was founded in 1994 has seen enormous growth over the last five years and has greatly extended its range of cloud based services. Amazon has its headquarters in Seattle, Washington, United States. The CEO of Amazon is Jeff Bezos. Amazon Web Services (AWS) is the cloud services platform of Amazon. Amazon is also the largest R&D spender in the entire industry. The company has divided its business into three main segments that include Amazon North America, Amazon International and AWS, the largest one being the Amazon North America segment which accounted for more than 60% of the company’s revenue in the last two years. 

 

Amazon uses a number of targeted online channels to promote its products and services. These targeted marketing channels include sponsored search, Associates program, social and online advertising, television advertising, and other initiatives. Increased expenditure on online channels as well as increased payroll and related costs for the marketing personnels have led to higher costs of marketing for Amazon. These marketing expenses are largely variable subject to changing rates as well as variation in sales. In 2017, Amazon’s marketing expenses rose 39% over the previous year. Its marketing expenses for 2017 reached 10 Billion dollars compared to 7.2 Billion dollars in 2016. IN the past five years, Amazon’s marketing expenses have more than tripled.