Amazon owns a larger share of the digital ad business than many people realize. The Amazon platform ranks third behind Google and Facebook. While Google and Facebook account for 60% of all online marketing, the difference is that all the advertising on Amazon directly promotes physical products.
- Last year $42 billion was spent on Google advertising in the US, with an estimated $16 billion being spent on retail advertising. On Facebook, $8.8 billion out of $23 billion was spent on retail. On Amazon the entire $7.4 billion spent on advertising in the US was retail related.
- While only 8.8% of the total advertising budgets were spent on Amazon last year, 18% of retail advertising was spent on Amazon.
- Amazon’s market share of retail advertising is estimated to grow to 23% in 2019. If those projections are correct it will surpass Facebook.
- Because the Amazon platform is focused on a subset of digital advertising, it has higher conversion rates and better attributable ROI than the competition.
Read the full article on Marketplace Pulse.
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