Last year, Amazon Germany was able to increase its net sales in retail media with 20 percent. The revenue of its advertising business came to 2.9 billion euros in 2023. This is almost 10 percent of the company’s total revenue in Germany.
These data come from Amazon Germany’s financial statements for last year. In total, the online marketplace generated a revenue of 34 billion euros. Compared to 2022, this was an increase of 12 percent.
Retail media is a relatively new phenomenon, which entails advertising space at online retailers. Think of ads in search results, on overview pages and product groups. These are shown on websites of online stores, or shopping apps. The Interactive Advertising Bureau (IAB) Europe is currently working on industry standards for retail media in Europe.
Amazon’s advertising revenue
Ecommerce giant Amazon has been selling ad space on its marketplace for a while now. In the last quarter of 2023, it generated almost 13.5 billion euros (15 billion dollars) from retail media globally.
Globally, Amazon generated 42.4 billion euros in net sales through advertising in 2023
According to its latest financial statement, Amazon Advertising’s total international sales increased 24 percent, reaching 42.4 billion euros (47 billion dollars) in 2023. This includes retail media, as well as advertising on Amazon Freevee, Twitch and Prime Video.
Online marketing strategy
It is not surprising that brands are buying ads on Amazon Germany. It is the most dominant online seller in the Germany, with a revenue that is three times higher than that of the second largest online seller, Otto.
According to research in 2023, the online marketplace even influences offline retail in Germany. This means that a large portion of online consumers visit the website often, which makes buying ads on the marketplace a useful marketing strategy.
