As per a new report,
Amazon Ad Revenues will reach $40 billion by 2023.
That’s a 470% growth!
Last year, Amazon spent 3% on global digital advertising.
By 2023, expect this number to hit 8%.
Juniper Research’s report suggests that
Google’s ad revenues will surpass $230 billion by 2023.
This will be a 1% drop in its global
digital ad spend over the next four years.
What is causing this massive growth?
Thank Amazon and Baidu!
By 2023, the global digital ad spending
will cross the $520 billion mark.
In 2018, this number was $520 billion.
Growth of programmatic ad platforms and technologies
facilitating improved ad targeting is a major driver behind this.
The digital media landscape has been all about Google.
Amazon’s growth as an advertising platform
might disrupt this ecosystem.
eMarketer predicts that by February 2020,
Amazon will enjoy 10% of the U.S. digital ad market.
What’s interesting is that for the first time,
the combined share of Google and Facebook will drop this year.
In April 2019, Alphabet reported that its 15% y-o-y growth in
ad revenue was actually a drop in its growth for four consecutive quarters.
Amazon is playing it right in the digital ad domain.
The ecommerce giant has been focusing on omnichannel marketing.
The kiosks initiative is an
excellent example of their marketing strategy.
However, brands are still not ready
to part with Google and Facebook.
Another research shows that
Amazon display ads drive non-Amazon sales.
This is because Amazon is the one-stop shop
for many consumers for online shopping.
Last month, Amazon said yes to buying the ad server
and dynamic creative optimization unit of ad platform Sizmek.
What is Google doing amidst these developments?
It is rolling out new ad products driven by artificial intelligence.
AI-based ad delivery could be more targeted and privacy-compliant.
In May this year, Google extended its showcase Shopping Ads.
Using these, advertisers could group together a selection of
related products and present them together to introduce their business.
Facebook has been dealing with privacy-related issues lately.
However, its ad revenues do not seem to stall.