Everything to know about Amazon’s ad business, which is $31 billion and growing

Amazon has become the third-biggest digital advertising company behind Google and Facebook, hitting $31 billion in ad revenue in 2021.

Under new CEO Andy Jassy, Amazon is shaking up its ad business to attract TV ad dollars. It's also seeking out new frontiers for ads — including placements in its physical Whole Foods stores. Its growth has also led Walmart, Instacart, Walgreens and other retailers to build their own retail media platforms.

Here's the latest on Amazon's moves to expand its advertising business and the growing competition.

Amazon's ad business is big and growing

Advertising is a tiny sliver of Amazon's business, but it's one of the company's fastest-growing areas, up 32% in the fourth quarter, when it broke out its ad business for the first time. The tech giant continues to cut into advertisers' search budgets that mostly go to Google. It's also ramping up its audio and video sales pitch.

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Who runs Amazon's ad business

Amazon has built a team of execs to pitch advertisers, including people like Alan Moss and Colleen Aubrey; and agency and brand vets who work directly with marketers.

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Amazon's competition for ad dollars

Other big retailers and delivery companies including Walmart, Albertsons, and Instacart are scrambling to build their own ad businesses, and hiring top talent to do so.

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How advertisers navigate Amazon

Marketers have complained that Amazon is tough to navigate, and its structure has spawned a cottage industry of specialty firms. Amazon has rolled out buying tools, boosted its presence at industry events, and hired big agency talent to cozy up to advertisers.

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Amazon is hiring ad talent

Amazon is staffing up in advertising, but its tough interviewing process and distinct culture can make it hard for outsiders to break into the company.

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