Amazon Tops 10% of US Ad Revenues

April 27, 2021

This article is included in these additional categories:

Advertising Trends | Digital | Paid Search | Spending & Spenders

eMarketer Triopoly Share US Digital Ad Market Apr2021Amazon continues its quest to take a larger piece of the US digital marketing pie away from Google and Facebook. Recent data from eMarketer shows that Amazon accounted for 10.3% of US digital ad revenues last year, reaching $15.7 billion.

Estimates provided by eMarketer at the end of 2019 forecast Amazon to account for nearly 10% of digital ad spending by 2021. What this forecast could not predict was a pandemic that would drive marketers to up their investment in digital media. As a result, eMarketer reports that Amazon’s advertising business grew by 52.5% year-over-year in 2020 and its share of digital advertising breached the 10% mark a year earlier than expected.

In the meantime, Facebook (including Instagram ad revenues) also saw its share of ad revenue increase, climbing from 23.6% in 2019 to 25.2% in 2020. However, Google’s 28.9% share of ad revenue in 2020 is less than it was in 2019 (31.6%).

According to eMarketer, Amazon’s “chipping away” at Google’s share of ad revenue is coming largely in its growing share of US search ad revenue. While Google is still expected to account for 56.8% of search ad revenue this year, estimates have Amazon accounting for 19% of search ad spending in 2021 — up from 13.3% in 2019 — and, by the end of 2022, exceeding 20%.

The data also shows that a vast majority (89%) of Amazon’s ad business comes from e-commerce channel advertising (including search advertising and display ads on its retail properties). This year, Amazon is expected to account for 76.2% of the e-commerce channel ad market, with Walmart coming in a very distant second at 6.5%.

You can read more here.

About the Data: Data includes ads on all internet-connected devices and all types of advertising on those devices.

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