Data from research firm eMarketer shows that Amazon’s advertising business in 2019 will eventually encroach on the digital ad space occupied by the duopoly of Facebook and Google.
According to the estimates, Amazon will claim 8.8 percent of U.S. digital ad spending in 2019, which represents an increase from 6.8 percent in 2018. Furthermore, by the year 2020, this could reach 10 percent.
Per an article in Marketing Dive, “Amazon continues to grow its ad business, the new eMarketer report shows that the e-commerce site is encroaching on digital duopoly of Facebook and Google, which have dominated the digital ad space. Amazon surpassed Microsoft in 2018 as the No. 3 digital ad platform last year, and the gap is widening, as Microsoft’s share continues to drop.”
The research data shows that Google is expected to lose a percentage point of market share, dropping from 38.2 percent to 37.2. In addition, Facebook is expected to pull 22.1 percent of digital ad spending in 2019, which is barely higher from 21.8 percent in 2018.
Overall, the study is forecasting that Amazon will grow its U.S. ad business by 50 percent in 2019.
“The [Amazon] platform is rich with shoppers’ behavioral data for targeting and provides access to purchase data in real-time,” said eMarketer forecasting director Monica Peart in a statement. “This type of access was once only available through the retail partner, to share at their discretion. But with Amazon’s suite of sponsored ads, marketers have unprecedented access to the ‘shelves’ where consumers are shopping.”
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“No Go” in New York City
Amazon is scrapping its plans to build a corporate campus in New York City after caving in to mounting opposition from local residents and politicians.
The announcement came as New York Governor Andrew Cuomo and New York City Mayor Bill de Blasio were pushing hard to bring the online retail giant in with the prospect of creating over 40,000 jobs in the next 20 years with an average salary of $150,000.
However, the move met heavy opposition after the proposed deal would include over $3 billion in government subsidies amid budget cuts. Furthermore, residents feared that rising rents as a result of Amazon’s arrival would drive out longtime residents in the process and an influx of new workers would exacerbate over crowdedness in the subway systems.
The announcement comes after Amazon executives were heavily questioned regarding the proposal on topics, such as unions, jobs, local neighborhoods, and taxes. To some analysts, the move was seen as critical as New York City could no longer lean on Wall Street to be a major economic hub.
Instead, Amazon’s arrival would help the city use tech as another viable source of economic activity.
Furthermore, other analysts fear that this could prevent future businesses from setting up shop in New York City for fear of similar opposition.
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