2022Report AmazonAdvertising Benchmarks andTrends Feedvisor TheAgeofAmazonAdvertising AnunparalleledsurgeinbrandsadvertisingonAmazonhastakenplaceoverthepastyear,and thistrendwilllikelycontinuetogrowasmore andmorebrandscontinuetoadoptAmazon Advertisingintotheirmarketingstrategies. Reachinga$41.75billionadrevenuetotalasofearly2022,Amazon'sever-expandingsuiteofadvertisingancmediaofferingsmeansbrandsand theirtechnologypartnersmuststayontopofthe latesttrendsinorclertopinpointandleveragenew opportunitiesforgrowth. Thepushtoreachasmanycustomersaspossiblehas createcanunprecedentedcompetitivelandscape withbrandslookingforstrategicwaystoincreasetheirAmazonAdvertisingspendwhilealsoexploring theemergingpotentialofWalmartConnectandothere-commerceadplatforms. withadvertisingbudgetsnowshiftingawayfrom traditionaldigitalchannelsandembracingpoint-Basedonasurveyofmorethan1.oooU.s. of-purchaseplatformslikeAmazon,brandscannobrands,ouradvertisingexpertsunpackthe longerignoretheseplatforms'powerfulabilitytotoptrendsthatareshapingtheadvertising reachandconnectwithconsumersacrosseveryandmedialandscapewithinretailand stageoftheirshoppingjourney.e-commerce,revealinginsightsandbespoke strateglessuccessfulbrandsareusingtodayto DigitalMediaSpendAcrossChannels erowandwinonAmazonande-marketplaces. 80% 60% 40% 20% 0% Aniazon4/5060PaidsocislDisplay/progranmatic 20212018 e/arkete:;2022 FEEDVISOR TableofContents BRANDSONAMAZON ADVERTISINGTYPESANDFORMATSDRIVINGROI ADTOOLSTOHELPMAXIMIZEPERFORMANCE WHAT'SAHEAD13 BrandsAdvertisingonAmazonSeeHighROi 53%BrandsViewAmazonastheBestPlace toAdvertiseforReturns ofbrandsadvertisingonAmazonseean averagereturnof7x'sormore 28% ofbrandsseethehighestmediaspend Withitslowprices,vastselectionofgoods,excellentreturnfromAmazon customerservice,ancldeepunderstandingofits customers,Amazonisahavenforbothdealseekers andadvertisers,with83%ofbrandsnowadvertising there. ChannelsGeneratingtheHighestReturnon MediaSpend Forthepasttenyears,Amazon'sadvertising businesshasquietlygrowntobecomeoneofthemostsought-afteradvertisingopportunitiesby 28% Amazon.com 28% Google.com 25% PaidSocial 14% Display/programmatic InadvertisingrevenueInthelastyear.iThlsisthefirsttimethatAmazonhasreportedits'advertising revenue,anditisalreadyoneofthefastest-growingpartsofAmazon,increasinganimpressive32%year-over-year.lnaddition,Amazonisprojectedtodrive 77.7%ofallU.S.retailmediadligitaladspendthis year.2 Amazon'ssuccessisevidentnotonlyinarecord- breakingrevenuestreambutinpublicopinionwith 6%Otherdigitalchannels 58%ofbrandsseeingagreatclealofvalueinAmazon Advertising,up8%fromlastyear. ThiscomesasnosurpriseslnceAmazonlsmorethanequippedtohandlethechallengeofreachingconsumersinrelevantplaces,eviclencedbytheir newadoptionsforadvertisersbothonandofftheir platform. eMarketer,202iFEEDVISOR BRANDSADVERTISINGONAMAZONSEEHIGHROI Infact,brandsnowInvestonaverage36%oftheiadvertisingspendonAmazoneachmonthwith 33%ofbrandsinvesting$81k+amonthonAmazon Advertising. Cfetpo Additionally,topbracketspendingonAmazon Advertisinghasincreasedoverthepastyearwithoneinfivebrands(20%)nowspending $10OKormorecomparedtolastyear's11%. WhileadvertisingonAmazonishappeningallyear-round,43%ofbrandsconsistentlyadvertisethroughouttheyear.Brandsdecicingagainst Amazonaltogetherarelosingoutonahigherreturn. MonthlyAdvertisingSpendonAmazon 35% 26% 19%20% 22% 19%20% 16% 13% 15%14% 13% 11%11% 9% 6% $0-20K$21-40K$41-80K$61-80K$31-100K$100K+ 202020212022 TakeyourAmazonadvertisingresultstothenextlevelwith thepowerofFeedvisor3GO.Learnmoreatfeedvisor.com/platformFEEDVISOR BRANDSADVERTISINGONAMAZONSEEHIGHROI AcquiringNewCustomersistheConsumersflocktoAmazonforthreemainreasons: PrimaryGoalforAdvertisingon AmazonVastproductassortmentwithnear-limitless InventoryfueledbyAmazon'sfulfillmentservlce. Acquiringnewcustomersisthemostpopulargoal forbrandsadvertlslngonAmazon(61%),followedby drlivingbrandlawareness(56%),drivingsales(53%), Optimizedcheckoutwiththeirsingle-click checkoutprocessesandofferingsubscriptionsforhouseholdproducts. andgainingmarketingshareovercompetitors(45%). Unmatchedmembershipbenefitsincluding freeexpeditedshipping,videostreaming,music Top5GoalsonAmazon streaming,eBookdownloacls,andfreetrialsofotherAmazonservicestonameafew. AcquiringnewcustomersAmazonhascreatedaconvenlentandefficlent shoppingexperiencethatisdifficulttomatchwith 2Drlvingbrandawareness 3Drivingsales 4Gainingmarketshare 5Protectbrandfromconqucsting morebrandsrecognizingthepowerofhavinganAmazonpresence. Pro andhaveafullfunnelview AmazonA Ads BrancschooseAmazontoacquirenewcustomers becauseofitspopularityamongconsumers.Currently,92%ofconsumerssaytheyaremore likelytobuyproductsfromAmazonthananyothere-commercesitewhile56%ofconsumorssaythey Startnow visitAmazondailyoratleastafewtimesaweek.3 Amazon.2022 Feeov/sorProprietaryResearcin,2021 FEEDVISOR TheEver-ExpandingAmazonAdvertisingArm 44%TypesofAmazonAdvertisingBrandsUse ofbrandsnowuseAmazonvideoadsas partoftheirstrategies44%VideoAds Amazoncontinuestoaddtoitsadvertisingsuite41