While Amazon is the undisputed giant of e-commerce, it is also gradually establishing itself as a major advertising partner in the US. That momentum is likely to accelerate this year and over the next few years, according to a survey by investment bank Cowen of 52 major American advertisers.
Amazon continues its rise in advertising
Cowen’s survey surveyed 52 American ad buyers, who account for $ 15 billion in ad spend in the United States alone. Based on the responses received, the investment bank was able to estimate that Amazon’s share of advertising spending would change significantly in the coming years: if it were 7% in 2020, it is expected that it will increase to 11% from 2022.
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At the same time, YouTube and TikTok should barely gain 1% of the shares in the same period. The other platforms, on the other hand, should remain relatively stable or, in the worst case, experience a slight decrease in their share.
Cowen even estimates that Amazon’s advertising revenue will hit $ 26.1 billion in 2021 and $ 85.2 billion five years later. The e-commerce giant should hold 13% of the global digital advertising market by 2026.
What to fear with Facebook and Google?
During this survey, buyers were also asked which platform besides Facebook and Google would be most likely to become a major player in the digital advertising industry. Unsurprisingly, 35% to 43% of respondents chose Amazon for different spending.
Additionally, buyers rated Amazon as the second best ROI platform out there today, just behind Google. Jeff Bezos’ company has a huge advantage for good reason: by nature, users who visit his site are already driven by real purchase intent.
Finally, remember that Apple is making significant changes to its personal data collection and confidentiality policies. New resolutions that, through the press, have given way to an open war between the apple giant and Facebook. For the surveyed buyers, Amazon would ultimately be the platform least affected by these changes, well ahead of Google and YouTube.
This survey leaves only doubts: Amazon is experiencing a rapid and strong increase in the advertising market. If this trend is successful in the US, it will very likely spread to the rest of the world very quickly. Google and Facebook should be more careful.