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eMarketer Raises Amazon Ad Forecast

Amazon jumps to No. 3 in US behind Google and Facebook

September 19, 2018 (New York, NY) – Just weeks after hitting $1 trillion in market cap, Amazon has reached another milestone: It has jumped to third place among US digital ad platforms, surpassing Oath and Microsoft for the first time. The shift comes after eMarketer increased its projections for Amazon’s ad business in its latest US advertising forecast. The revisions are partly the result of strong organic growth in ad revenues, coupled with accounting changes that now classify some advertising services (previously classified as cost of sales) as revenues.

In 2018, Amazon will generate $4.61 billion in US ad revenues, higher than the $2.89 billion eMarketer had projected in March. That gives the ecommerce giant a 4.15% share of the US digital ad market.

Monica Peart, eMarketer’s senior director of forecasting. “Its strong handle on consumer purchase behavior sets it apart from Google and Facebook in the digital ad market, which has made the company an attractive option for advertisers.”

The jump in Amazon’s US market share is also partly due to consumers increasingly starting product searches on the site, rather than on Google.

“That increased search traffic gives third-party sellers a reason to increase bids for keywords on Amazon,” Peart said.

This year, Google and Facebook will control a combined 57.7% of US digital ad revenues (37.1% and 20.6%, respectively), down from 59.1% last year, as the overall digital advertising pie grows and smaller players capture a growing share.

eMarketer has also increased its projections for Amazon mobile. This year, Amazon will grab $1.61 billion in net mobile ad revenues, a 242% jump over 2017. That means Amazon now has a 2.1% share of the US mobile ad market.

 

Methodology
eMarketer’s forecasts and estimates are based on an analysis of quantitative and qualitative data from research firms, government agencies, media firms and public companies, plus interviews with top executives at publishers, ad buyers and agencies. Data is weighted based on methodology and soundness. Each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of available data means the forecasts reflect the latest business developments, technology trends and economic changes.

 

About eMarketer
Founded in 1996, eMarketer is the first place to look for research about marketing in a digital world. eMarketer enables thousands of companies worldwide to understand marketing trends, consumer behavior and get the data needed to succeed in the competitive and fast-changing digital economy. eMarketer’s flagship product, eMarketer PRO, is home to all of eMarketer’s research, including forecasts, analyst reports, aggregated data from 3,000+ sources, interviews with industry leaders, articles, charts and comparative market data. eMarketer’s free daily newsletters span the US, EMEA and APAC and are read by more than 200,000 readers globally. In 2016 eMarketer, Inc. was acquired by European media giant Axel Springer S.E.

 

For more information, contact:
Douglas Clark
PR Director, North America
646-863-8807
dclark@emarketer.com

Posted on September 20, 2018.