Amazon's advertising boss now reports directly to Jeff Bezos, a change that shows how serious of a threat it is to Google and Facebook's core business

• Paul Kotas, SVP of Amazon Advertising, now reports directly to CEO Jeff Bezos, Business Insider has learned.
• The change follows the one-year leave of SVP Jeff Blackburn, who ran a vast portfolio of businesses, including advertising and video streaming.
• Mike Hopkins, the newly hired SVP of Amazon Video and Studios, and Paul Krawiec, who runs corporate development teams, were also added to Bezos's inner circle last month.
• The promotion is the latest sign of Amazon putting more emphasis on its advertising business.
• Here's a list of the 12 executives who report directly to Bezos.
• Visit Business Insider's homepage for more stories.

The head of Amazon's advertising unit, Paul Kotas, is now one of the 12 direct reports under CEO Jeff Bezos, signifying the growing importance of the ad business within the company.

Kotas, SVP of Amazon Advertising, was promoted last month, following the one-year leave of SVP Jeff Blackburn, who previously managed a vast group of teams including the advertising unit, Business Insider has learned. Mike Hopkins, the former chairman of Sony Pictures, was also added to Bezos's team, as previously reported, as well as Peter Krawiec, who runs Amazon's corporate development team.

This is the first major expansion in Bezos's direct reports in at least three years. Amazon's representative declined to comment.

Kotas's promotion follows the meteoric rise of Amazon's advertising business in recent years. As more sellers and brands buy ads on Amazon's marketplace to promote their products, Amazon saw its ad sales balloon to $14 billion last year, up roughly 40%. eMarketer predicts that Amazon will account for 10% of US digital ad spending by 2021, behind only Google and Facebook, which control a combined 60% of the market.

It's unclear if the organizational change is permanent, as Blackburn is expected to return next year. But it's a different arrangement from past cases. For example, when Diego Piacentini, Amazon's former SVP of international business, who previously reported to Bezos, took a leave in 2016, his successor Russ Grandinetti didn't get promoted to the CEO's inner circle, despite taking over most of his responsibilities.

Other people who previously reported to Blackburn, like the executives running Amazon Music and the IMDb units, are now under Kotas, showing Bezos's interest in staying directly engaged with the advertising business.

There are other signs of Amazon putting more emphasis on its advertising business. Colleen Aubrey, VP of performance advertising, recently joined Bezos's "S-team," a broader group of more than 20 of Amazon's most senior executives who advise the CEO on major business decisions. The advertising team also hosted its first conference called AdCon 2019 last year.

Kotas first joined Amazon in 1999, making him one of the company's longest-tenured executives. He was one of the first employees to leave D.E. Shaw - Bezos's former employer - to join Amazon, but he had pushed back his move a couple of years, costing him a fortune in stock compensation, according to Brad Stone's book, "The Everything Store."

Here's a closer look at the 12 most powerful people at Amazon who report directly to Bezos:

Jeff Wilke, CEO of worldwide consumer

Wilke is one of the three CEOs at Amazon, alongside Bezos and Andy Jassy, who runs the AWS cloud division. Wilke, who first joined Amazon in 1999, is in charge of everything on the retail side, including the marketplace, Prime memberships, and Whole Foods.

Andy Jassy, CEO of Amazon Web Services

Jassy, who started at Amazon in 1997, is the face of the AWS cloud division. As CEO of AWS, Jassy runs all aspects of the $35 billion business, and is considered one of Bezos's most trusted lieutenants.

Jeff Blackburn, SVP, Business and Corporate Development

Blackburn runs newer parts of Amazon, such as Prime Video and its advertising business. He also oversees the company's M&A and investment arms. Blackburn, who joined Amazon in 1998, is also considered one of the closest advisers to Bezos. He's currently taking a one-year sabbatical.

Dave Limp, SVP, Amazon Devices, Digital Management

Limp is Amazon's hardware boss. He runs the secretive Lab126 team and other parts of Amazon's hardware business, such as the Alexa voice-assistant. He joined Amazon in 2010.

Jay Carney, SVP, Global Corporate Affairs

Carney runs all press and policy teams at Amazon. His role has grown in importance lately as Amazon has faced a more hostile regulatory environment. Carney previously served as the White House press secretary for President Barack Obama.

Brian Olsavsky, SVP and CFO

Olsavsky is in charge of Amazon's finances. He's best known for taking the company's earnings call every quarter. After joining Amazon in 2002, he was promoted to CFO in 2015.

David Zapolsky, SVP & General Counsel, Legal

Zapolsky is Amazon's top lawyer. He oversees Amazon's legal and compliance issues. He became the general counsel in 2014, nearly 15 years after joining Amazon.

Beth Galetti, SVP, Human Resources

Galetti is in charge of Amazon's human resources division. Her responsibilities include hiring and employee benefits, as well as performance reviews. She was named the HR chief in 2016, just three years after joining Amazon.

John Connors, Executive Assistant

Connors has been Bezos's executive assistant for the past two decades. That loyalty has earned Bezos's respect, as he thanked Connors in an Instagram post last year for his continued service. "You're a big reason I'm able to be so busy and not go nuts - in fact, you somehow even make it calm!" Bezos wrote.

Paul Kotas, SVP of Amazon Advertising

Kotas joined Amazon in 1999, after a brief stint at D.E. Shaw, Bezos's former employer. He's in charge of Amazon's advertising business, which has been one of the fastest growing and most profitable parts of the company in recent years.

Mike Hopkins, SVP of Amazon Video and Studios

Hopkins, the former chairman of Sony Pictures, joined Amazon last month, as the new leader of Amazon's video streaming and content business. Previously, he was also the CEO of Hulu and the president of distribution for Fox Networks Group.

Peter Krawiec, VP of worldwide corporate development

Krawiec leads Amazon's corporate development group, overseeing the company's acquisitions, investments, and partnerships. He joined Amazon in 2004. His role has become more important as Amazon has become a more active buyer and investor in recent years.