In the list of the great global advertisers, Amazon occupies a very prominent position. In 2020, it became the world’s leading advertiser, being the company that spent the most money on advertising. Estimates at the time indicated that 2% of all global advertising spending was already in the hands of Amazon, surpassing the giants of consumer products as the companies that invested the most in advertising spend.But 2020 has been a complicated year in advertising investment and that has also been noted in Amazon accounts. For the first time in many years, Amazon has reduced its ad spend. It has done little in percentage terms, but the total – given its high weight in the market – has been very large.In total, Amazon has reduced its ad spend by 1%.

According to the company’s own accounts, which recently presented financial results, the Lithuania Email List company has cut advertising spending. In its accounts, “the costs of advertising and other promotions” fell from the 11,000 million dollars that it had closed in 2019 to 10,900 million in 2020.It is the first time that Amazon has cut ad spend since 2003. Since that year, and they have been 17, Amazon’s spending on advertising has been steadily increasing. Still, general marketing spending, as they recall in Campaing , explaining that advertising is one of the pieces of that total, rose in general terms by 17%.Why you cut your investment Why was Amazon less advertised? The key is in the corona virus crisis.

The company itself has explained it. The crisis has meant that they have had to spend less on advertising.Analysts are also pointing in that direction. As Brian Wieser, Group M’s global president of business intelligence, points out to the British media, the clearest explanation for this advertising hiatus would be what happened at the beginning of the pandemic. Amazon had to stop advertising because it couldn’t be exposed to generating more demand than it could handle.They could not die of success and by now they were already at an overwhelming peak of use. It was the weeks where some non-essential products had insane expected delivery times, while Amazon prioritized certain deliveries over others.In fact, in March, Bloomberg already published that Amazon had cut its investment in search ads on Google.

According to data from the Tinuiti agency, he had done it in all categories of search ads in the giant. “They do not need more demand,” an expert pointed out at the time.This does not change your position as one of the big advertisers.Despite this cut and this strategy, Amazon does not lose positions as one of the largest global advertisers. As pointed out in Campaign, the growth of the previous years and its high advertising investments position it as one of the competitors for the podium of the largest advertiser in the world.In the latest AdAge ranking of global advertisers, Amazon was already the company that spends the most on advertising of all . The growth of its investment in advertising is, the ranking pointed out a few months ago, higher than its growth in sales. Amazon already spends more money on advertising than Procter & Gamble or L’Oreal.

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