• The Advertising Business Race: Amazon vs Google & Facebook

Whose ad business is growing faster than Google & Facebook combined? Amazon of course.

We might sound like a broken record at this point, but here we go again. If you’re not thinking about Amazon when it comes to your advertising options, think again! Amazon’s ad business is growing faster than Google and Facebook combined.

While Google and Facebook represent over half of the U.S. advertising market (42% and 23%, respectively), Amazon’s share of the pie snags roughly 2.5% of ad spend. While small in comparison to the current duopoly, Amazon is expected to grow 55% year-over-year,  which is much faster than Google’s (15%) and Amazon’s (25%) projected growth.

Why has Amazon’s ad business grown so fast?

Companies like Mondelez and Procter & Gamble see Amazon as a place to partner with the e-Commerce giant and win the “digital shelf”, much in the same way they fight to win physical shelving in grocery stores.

Major brands are now pressing their advertising agencies for an “Amazon strategy”, much like they did with Facebook and Google a few years back. And with most of Amazon’s traffic visiting the website with intent to buy, they are currently billing themselves as a better advertising investment than Google or Facebook.

Digital Ad Space Disruption

Amazon is pushing the limits of its ad business beyond the confines of traditional sponsored search results and display ads. In an aggressive sell, Amazon is painting the portrait of itself being a lifestyle media brand that influences purchasing decisions.

One of the goals that Amazon sets out to accomplish is to make advertising seem less like advertising. What does that mean? It means Amazon wants to move away from advertising in its traditional forms, and make it feel more natural and organic.

With focus on the company’s e-Commerce search and video products, Amazon will allow purchases of entire pages that will be customizable for brands. Complete with built-in video and other tools to tell their brand’s story, companies will be able to tailor their page just the way they want it.

It’s also rumored that future ad products could include buying products within Amazon Video programs. How about Alexa? We suppose only time will tell.

With the current climate of the advertising world being infiltrated by Amazon ads, we think it’s time for Google and Facebook to start looking over their shoulders.

Interested in exploring your company’s Amazon product content strategy? Have a chat with Sellpoints, our Amazon e-Commerce content company.

By | 2018-02-13T18:36:26+00:00 January 30th, 2018|eCommerce Marketing|

About the Author: