Last year, Amazon became the No. 3 digital ad seller in the US. Its days of triple-digit ad revenue growth are in the past, and it’s still much smaller than second-place Facebook. But Amazon is a critical advertising channel for many product categories thanks to rich audience data and closed-loop attribution.
How big is Amazon’s ad business in the US, and how big will it get?
Amazon will net almost $10 billion in US ad revenues this year, which represents almost 8% of the digital ad market. Now that Amazon’s ad business is bigger, growth is slowing, but we expect it to gain share through the end of our forecast period in 2021.
What’s driving and hindering growth in Amazon’s ad revenues?
Advertisers are still finding good return on their investments in Amazon’s ad placements—but some search formats are so saturated and prices already so strong that there’s little room for growth. Growth is faster on the display side, which is gaining share of the business.
How are brands approaching advertising on Amazon?
Brands are focusing their Amazon ad spending on search formats geared toward the lower funnel, and most are also working with Amazon-specialized agencies or other partners to help them get the most out of the retail giant’s offerings.
Are consumers still happy with Amazon’s ad experience?
Though ad load on Amazon has increased, there’s little evidence that consumers are less satisfied with their experience—but there is some media scrutiny that suggests public notice may not be far behind.
WHAT’S IN THIS REPORT? This report includes our estimates of Amazon ad revenues, analysis of trends in advertiser approaches to Amazon and information about consumer attitudes toward ads on the site.
KEY STAT: Amazon will earn $9.85 billion in net US digital ad revenues this year, representing 7.6% of the market. By 2021, nearly one in 10 US digital ad dollars will go to Amazon.
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