January 18, 2019

Amazon growth


According to an eMarketer report, Amazon ranked third after Google and Facebook in digital ad revenue in the US (). The forecast of Amazon ad revenue by the end of 2018 was only 4.15% of total US ad revenue. But while Google and Facebook’s market share decreased, Amazon’s was growing. Amazon mobile advertising business growth was 242% compared to 2017. Moreover, one executive at a large agency said that some clients... who sell products on Amazon were moving 50-60% of their ad budget that had been allocated to Google search specifically to Amazon. He noted that the shift amounts to hundreds of millions of dollars a year. The same news was received from Havas Media: 20-30% of its clients shifted 50-70% of their total search budget to Amazon. Chris Apostle, executive vice president of Havas Media, said that its clients increased their Amazon ad spending by 300% in 2017, and he expected additional growth by 200-300% in 2019. But Amazon now provides limited categories of products, which is why companies in large advertising categories such as auto, travel, and some entertainment including ticketed events don’t have reason to move their ad budgets to Amazon. And direct sales work well on Google search. Also, Google receives the ad budget in these categories that moves from TV to YouTube, which it also owns. Google remains the leader of paid search and advertising, but Amazon continues to attract first place in the minds of online shoppers of the Western world.


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