Amazon ad business projected to grow 50% this year

Anne Freier

In Mobile Advertising. February 21, 2019

Amazon has been busy ramping up its advertising efforts over the last two years. Now, the company’s US ad business is projected to grow over 50% in 2019, reaching 8.8% of the digital advertising market according to an eMarketer forecast shared with Marketing Dive.

For 2020, Amazon is projected to increase its digital ad market share to 10%.

At the same time, Google’s shares of the digital ad market are projected to decline in 2019 for the first time, signalling that eCommerce is slowly eating into its share.

Indeed, 57% of brands selling on Amazon now also advertise on the site, with half spending over $40,000 on ads per year and 38% even $60,000+.

eMarketer predicts that Google’s share will drop to 37.2% from 38.2% in 2018. Meanwhile, Facebook’s share (including Instagram) will increase slightly to 22.1% up from 21.8% in 2018.

Microsoft is projected to fall from 4.1% to 3.8% whilst Verizon will decline from 3.4% to 2.9%.

Furthermore, total US digital ad spend is predicted to reach 19.1% to $129.34 billion in 2019. That means digital will account for 54.2% of total US ad spend.

Mobile will make up two-thirds of digital ad budgets for a total of $87 billion this year, whilst the share of traditional ad spend will drop from 51.4% in 2018 to 45.8%.