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Amazon Ads revenue soars despite low local presence

Like they say, everyone’s different. What works for some, doesn’t for others.

Amazon’s no exception…

It’s not a local thing: According to a recent Borrell survey, only 3% of local advertisers use Amazon ads to promote their brands, compared to the 36% that use Google and the 58% that use Facebook.

% of local businesses buying ads on each platform

Average annual ad spending by local businesses

No surprises here, since the local factor may still not make a big difference on the platform.

Yet Amazon is having a strong Q3: According to Tinuiti, that manages over $400 million of Amazon ad budget, spend is up by 21% compared to last year, costs-per-click (CPC) are down 4%, and sales are hovering around 14%.

2022 Amazon US Sponsored Products Y/Y Growth

Oh, and Amazon is testing TikTok-like vertical images and videos. But only among their employees, so it’s unclear when it will roll out globally.

Why we care: This news can be helpful if you’re running Amazon Ads and want to make sure you’re getting the most out of them.