Amazon – The Next Ad Frontier

Headlines may be covering the success Amazon had on Cyber Monday, but the eCommerce giant is shaking things up in another industry.

Amazon - The Next Advertising Frontier?

The digital advertising duopoly have another contender stepping up to the ring. While Facebook and Google (said duopoly) dominate the digital advertising industry with almost 66% of all digital ad revenue, Amazon has shown potential to be a platform capable of breaking the mold that has been set for the past few years. eMarketer estimates that Amazon will see a 144.5% increase in revenue from ad spend on its platform this year. They will still lag far behind Facebook and Google but have quickly surpassed other digital advertising platforms.

What does this mean for consumers?

Amazon is collecting data that Facebook and Google don’t have the means of obtaining. Consumers are making purchases on the same site that is targeting and retargeting them. Most specifically, consumers can expect to see ads on the Amazon platform that target their onsite purchasing habits.  

Amazon Digital Ad Revenue

What does this mean for companies running digital ads?

The increased competition will undoubtedly drive down the prices of digital ad spend with Facebook and Google, allowing more businesses to be able to compete in one of the fastest growing marketing channels. As more companies enter this market, they will also discover the competition for paid awareness of their product or service. The need for marketing strategies to include detailed Pay-per-click (PPC) campaigns and an SEO expert on board will also increase in demand. 

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