Statistics: Huge demand for Amazon ads during 2019

Amazon expected a good holiday season and got it. The company generated $87.4 billion in net sales for the fourth quarter of 2019, up 21% from the same period a year earlier. On the advertising front, the company generated advertising revenue of approximately $4.8 billion for the quarter, an increase of 41% year over year. This brings the company's annual advertising income in 2019 to about $14.1 billion, an increase of 39% from $10.1 billion in 2018.

Amazon's advertising business makes up the bulk of "other" net sales. “Advertising as a subset was growing at a roughly similar rate year over year in the fourth quarter compared to the third quarter,” David Fields, Amazon's director of investor relations, said during an earnings call last week. In response to a question about its brand advertising initiatives, Fields said the company focuses a lot on “brands as group advertising customers” and is seeking to help brands “better tell customers who they are” and help “customers discover products and brands.”

The ability to link advertising directly to sales on Amazon has been a key draw for advertisers, and “I think they appreciate the fidelity we can provide around shopping outcomes,” Fields said on the earnings call, adding, "We're in a unique position to do that given our retail business." Amazon is the third largest player in the online digital advertising sector after leader Google and runner-up Facebook.