Amazon disrupts digital ad duopoly poised to capture 8% of market in 2023

Anne Freier

In Mobile Advertising. June 25, 2019

Digital ad spend which includes mobile, in-app, digital out-of-home, web and over-the-top TV services, is estimated to reach $520 billion in 2023, up from $294 billion in 2019.

According to Juniper Research’s latest Future Digital Advertising: Artificial Intelligence & Advertising Fraud 2019-2023 report, Amazon is poised to capture 8% of the digital ad spend market by 2023, disrupting the Facebook-Google duopoly.

Amazon’s ad revenues are predicted to reach $40 billion by 2023, up 470% from 2018.

The eCommerce giant has been busy expanding its ad product portfolio and earlier this year launched short-form video ads. In June, the company acquired bankrupt tech company Sizmek’s Ad Server to bolster its advertising features.

The rapid growth of Amazon’s ad business is driven by its investment in machine learning, targeting options and existing retail data.

Meanwhile, Google ad revenues are forecast to reach $230 billion by 2023. However, the company is losing more than 1% of its global market share over the next four years due to strong competition.

The study indicates that 75% of mobile and web ads will be delivered via AI-based programmatic technologies in 2023, because ad platforms will increasingly focus on contextual ads whilst making use of machine learning to bolster targeting abilities.

According to Sam Barker, an author of the study, ad traffic has generated large amounts of data, which include customer purchasing habits, but also their location. In combination, such data and insights will likely drive ROI for many advertisers.