Amazon Forecast to Account for 1 in 10 US Ad Dollars in 2021

November 19, 2019

This article is included in these additional categories:

Advertising Trends | Creative & Formats | Digital | Display & Rich Media | Paid Search | Spending & Spenders

Amazon’s US digital ad revenues are expected to grow by 33.1% year-over-year in 2019 to reach $9.85 billion, per new estimates from eMarketer. These same estimates show Amazon’s net US digital ad revenue growing faster in the next two years than its two biggest competitors, Google and Facebook.

Amazon is estimated to account for 7.6% of the total US digital ad spend this year. The e-commerce giant’s portion of digital ad spend is projected to continue to increase, growing to 8.6% next year and 9.7% in 2021. In dollar terms, Amazon’s US ad revenues are predicted to be about 70% higher in 2021 than this year, and more than twice last year’s total.

Still, it’s not all rosy. Due to slower than expected growth in the first half of 2019, eMarketer revised its original forecast which had estimated Amazon’s ad business growing by more than 50% and reaching $11.3 billion in revenues this year.

Despite this reevaluation, Amazon’s total digital ad revenues are expected to continue to grow in double digits through 2021 with an estimated growth of 32.5% in 2020 and 28.0% in 2021. Although Google and Facebook, which together accounted for more than half of all digital ad spend in 2018, are both expected to see revenue growth in the next two years, their more mature ad businesses will grow more slowly. By 2021, eMarketer forecasts that Google’s ad revenue growth (14%) will be less than half the expected growth for Amazon.

The firm also estimates that close to three-fourths (72%) of Amazon’s US net digital ad revenues will come from search ads.

About the Data: Figures are based on eMarketer estimates, which include all advertising formats across internet-connected devices.


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