Amazon’s golden year in online advertising: it is getting closer to Google and Facebook

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Amazon’s golden year in online advertising: it is getting closer to Google and Facebook

In recent years, Amazon’s growth in the advertising market has been remarkable. The ecommerce platform opened the door to the inclusion of advertising messages and, as purchases increased and also as consumers looked for products there even if they later went to buy them elsewhere, the interest of brands for a good position in the service was growing too. Ad spend was on the rise and analysts were beginning to point out that Ivory-Coast Mobile Database only Amazon had enough room for maneuver to impact the market share of Facebook and Google. The crisis of the last year has accelerated this process. In the face of the confinements but also in the face of the reduction in interest in leaving home, online purchases were growing. Ecommerce became the refuge of consumers and Amazon one of its great leaders. 2020 has already closed with a mutation: when talking about the online advertising market, it is no longer possible to talk about the duopoly, as it has been up to now, but rather about the tripolis . Amazon’s weight in the advertising market has grown remarkably. The latest market share accounts already make it clear: Amazon has a significant share of the pie. Ivory-Coast Mobile Database

The last accounts of its percentage of market share come from the United States and are linked to the digital advertising market of that country. Even though the numbers are American, the data is invaluable for understanding industry changes and market trends. The US market tends to function Brother Cell Phone List as an advance to understand what will happen in the online markets of other countries afterwards. And in 2020 Amazon closed having control of 10.3% of the online advertising market, according to eMarketer figures collected by The Wall Street Journal . This represents a remarkable growth compared to the 7.8% it had in 2019. In terms of how much this means in advertising revenue, the study’s estimate puts it at 15,730 million dollars, a figure that is 52.5% higher than the which closed in 2019.

What it means in market terms
The growth is important and, although it still has a lower market share than Google and Facebook (which are 28.9% and 25% of the online advertising market), it shows the risk it poses for these players. Amazon is rising and becoming an ever stronger rival. eMarketer believes that Amazon will reach 11.9 and 12.8% of the advertising market in 2022 and 2023, respectively. By 2021, they believe that it will close the year with 10.7% of the online advertising market, a slight rebound compared to the end of 2020. Nicole Perrin, an analyst at eMarketer, explains that it is a situation “in which the pandemic accelerated somewhat which was already happening anyway. ” The immediate future will bring continued “notable” gains.

Their ad revenue will ‘eat’ part of the market that the two duopoly giants now compete for, but they won’t just feed off of it. Analysts estimate that changes in consumption patterns will also change how advertising budgets are distributed. Some of the money Amazon makes will come from traditional marketing and advertising budgets. After all, 90% of the giant’s advertising revenue comes from its online store and not from other services (such as Twitch). It is just the market that marketers want to conquer and recover.

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