Digital marketers have taken a keen interest of late in the growth of Amazon’s advertising business. The platform’s success has led to questions: how can digital marketing agencies and their clients leverage this newfound clout? How will Google, Facebook, and other advertising platforms be affected? Will the digital marketing world’s vaunted duopoly (Facebook and Google) evolve into a ‘Big Three?’
New research reported by Barron’s offers early answers to some of these questions. First, Google and Facebook shareholders have nothing to fear from Amazon’s rise. The research suggests that Amazon’s advertising growth will come at the expense of traditional advertising mediums and smaller digital platforms rather than its two primary competitors.
“We do not believe that market share will be taken at the expense of Facebook and Google, which should each grow as a percentage of digital advertising spend through 2022,” Jeffries analyst Brent Thill told Barron’s. “We believe Facebook, Google and Amazon will take share from smaller players as well as incremental share from offline-to-online transition.”
Though Amazon will remain the smallest of the three, it along with Facebook and Google will account for roughly 65 per cent of digital advertising business today and up to 72 per cent by 2022. A Big Three is indeed emerging, which is a huge development in an industry that has been dominated by two companies for years.
As for how digital marketers can leverage Amazon’s newly powerful advertising tools, it will take time for effective strategies to develop. Advertising on Amazon won’t make sense for every company, but it could be a major boon for retailers.
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