In 2020, Amazon's share of the total digital ad market in the US increased to about 10% (from about 8%), partly due to the impact of COVID-19 and the fact that advertisers were trying to reach customers who were shopping online. Overall, Amazon's ad business increased 53% to $15.73B and is expected to grow another 30% to surpass $20B in sales this year. Analysts expect that this growth will continue as marketers buy ads across Amazon's platforms, from it's e-commerce site to its streaming services (Twitch, Fire TV, and IMDb). This growth is most threatening to Google's ad business, which is expected to lose share from 29% to 27% by 2023. Google's Search business, however, is projected to grow this year to $14.52B (19% market share) and increase to over 20% market share in 2022.
In response to this, Facebook and Google are trying to gain traction within e-commerce and have both added features to their platforms. Google has updated Google Shopping with features that drive traffic to retailers and Facebook has added more shopping features to Instagram, WhatsApp, and Messenger. It's interesting to see how real the threat from Amazon is to the other digital titans but if they want to complete in the e-commerce space they will need to continue to add features as Amazon has a clear lead here, which further entices marketers to advertise on their platforms where they know customers will be frequenting.
Article Reference: https://www.marketingdive.com/news/emarketer-amazons-share-of-us-digital-ad-market-hits-10-for-first-time/597922/
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