This blog is a summary of Amazon’s recent Q4 results press release.
On February 3, 2022, Amazon.com shared its financial results for the fourth quarter, giving sellers and brands the insights they’ve been waiting for. Below is a quick overview of the important results from Q4 and all of 2021 on Amazon.
Amazon Q4 Result Summary
Here are the top takeaways from Amazon’s Q4 results:
1. Advertising Growth Skyrockets in Q4 on Amazon
Amazon reported advertising revenue for the first time, totaling $31.2 billion in 2021. These totals signify the ad business is now one of the fastest-growing parts of Amazon and the largest of three digital advertising platforms in the U.S. alongside Google and Facebook.
Growing an impressive 32% year-over-year, Amazon’s advertising services totaled $9.7 billion in ad revenue during quarter four. Previously, Amazon included the advertising services such as media sales and services, along with the ad tech that surrounds campaigns in the “other” business category for revenue. This shift to publicly sharing shows the importance, impact, and investments that Amazon is putting into its advertising business.
Amazon’s Q4 and 2021 results confirm the critical role advertising with Amazon is playing for brands and sellers alike. As the ads business continues to grow, and the number of ad options available proliferates search pages, the challenge will be to maintain the user experience and relevance to the consumer. A challenge Amazon is more than equipped to handle as evidenced by their new ad options for advertisers both on and off their platform. One thing we know for sure is there will be great importance, selling on Amazon or not, to find a space in Amazon advertising.