Amazon Share Of U.S. Digital Advertising Tops 10%

Amazon’s share of the U.S. digital advertising market rose from 7.8% in 2019 to 10.3% in 2020, according to a new eMarketer report.

Amazon’s U.S. ad revenue leapt 52.5%, to $15.73 billion last year, per the estimates, as reported by The Wall Street Journal.

While Google and Facebook still commanded estimated 28.9% and 25.2% shares, Amazon’s gains are expected to continue, with its share projected at 11.9% in 2022 and 12.8% in 2023.

The pandemic-driven surge in ecommerce last year accelerated Amazon’s already uptrending advertising, and search in particular.

While Amazon took a small amount of share from Facebook, it is competing primarily with Google.

Google’s share of total U.S. digital ad spending is projected to decline to 26.6% by 2023, from 28.9% in 2020, according to eMarketer.

In mid 2020, eMarketer projected that Google's U.S. digital ad revenue would for the first time actually decline in 2020, to $39.58 billion from $41.8 billion in 2019.

Some traditional shopper marketing budget dollars were likely shifted to sponsored products search and other ads on Amazon’s site, which accounted for 90% of its total ad revenue, per the report.

The projections call for Amazon’s search ad revenue to grow to $14.53 billion this year, or 19% of total U.S. search ad spending -- up from 13.3% in 2019. Google’s 2021 share of search is projected at 56.8%.

Amazon’s gains are expected to grow as advertisers rely more heavily on Amazon and other first party-data-driven ecommerce platforms due to Google’s phasing out of cookies.

Amazon also generates ad revenue through its Fire TV devices, ad-supported streamer IMDb TV, the live gaming platform Twitch, and ads sold on other platforms through its advertising technology.

Next story loading loading..