Joe Swallen, chief research officer in Kantar, said that while Amazon is becoming more productive, he also has to invest more in defending his own wound because Walmart, Target and Best Buy promote their business businesses Online is progressing.
"Even with a huge customer base and a leading share of online sales, Amazon needs to spend heavy on advertising to resist the growing focus of traditional retailers on e-commerce," he said.
Much of it's going to television. According to Kantar, Amazon spent 37 percent, or $ 679 million, from last year's US ad budget on television advertisements, up from 32 per cent in 2015.
That's where Amazon can reach a wider audience, even if targeting and measuring is less sophisticated than on digital channels, says Harikesh Nair, a marketing teacher at Stanford University.
"Television still provides high reach, making it good to raise awareness quickly," says Nair.
Promoting its mainstream brand America is important because Amazon has expanded into so many different areas, including hardware, grocery stores and entertainment. Google, Microsoft, Walmart and Hulu are all competitors and require Amazon to expand its spending, says Carl Mela, a marketing professor at Duke University.
"To build a share in these markets there is a need for significant marketing investment," said Mela.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
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