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For the first time, Amazon broke out the revenue it collects from advertisers on its platform. Previously this revenue had been lumped into a category Amazon labeled "other." In 2021 Amazon collected $31.16 billion in advertising revenue from sellers on its platform, which was a 32% increase over 2020. This makes Amazon the third largest digital advertising platform in North America, behind Google and Facebook. For comparison, Amazon Web Services (AWS), long thought to be Amazon's most lucrative business, generated $62.2 billion in revenue in 2021. AWS is one of Amazon's most capital-intensive offerings, consuming more than half of their capital expenditure budget, and yielding only $18.5 billion in operating income. While Amazon did not disclose the operating income generated from their ad business, it is almost certainly bigger than the income generated by AWS, making the advertising business the most profitable segment of Amazons entire empire.
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How do you review Amazon products for free?
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