The Bezos, who has always despised advertising, had to change their point of view.
The world’s largest online retailer Amazon over the past year increased spending on advertising 72.5%. It is reported by CNBC, citing a study by Kantar Media. According to the data obtained, 2018, the company spent for advertising about $1.84 billion, of which television advertising was allocated $679 million Is raised on Amazon fifth place ranking advertisers in the United States. It is noted that in 2015 the company is not even in the first twenty of a rating, informs Rus.Media.
Previously Amazon CEO Jeff Bezos claimed that advertising is “the price you pay when your product is no different”. However, in November last year during an internal meeting he said he changed his mind.
Changing attitudes Bezos to advertising reflects changes in the business of the company, which is no longer exclusively an online marketplace. Although most of the revenue comes from online sales, Amazon now has a portfolio of proprietary products and services that consumers and other companies need to see in advertising.
The TV channel notes that during Sunday’s super bowl, Amazon has shown its is the fourth consecutive year. Each 30-second spot this year cost a record $5.25 million, and the company showed several of them.
These costs do not affect the financial results of Amazon. In its latest report on profits and losses the company reported record marketing costs of $13.8 billion in 2018, which is 37% higher than a year earlier. This amounted to 5.9% of the total profit of Amazon and is the highest figure for the last 18 years. Marketing budget spending on advertising and advertising services amounted to $8.2 billion versus $6.3 billion in 2017.
The promotion of the brand in America is very important, because now the company is engaged in various industries, including equipment manufacturing, grocery stores and entertainment. Google, Microsoft, Walmart and Hulu are its main competitors, which lead the company to spend more on advertising, analysts say.