Amazon has become a business model that goes far beyond e-commerce or distribution, to the point where amazon’s advertising grows at such a rapid rate that it has become the third largest seller of digital ads in the world. America, a new twist that could threaten the world’s largest ad publishers. 2020 promises to be the year of its boom in Europe.
There is no doubt that marketing and advertising must inevitably go hand in hand, but do you really use all the tools at your fingertips to get the best out of your company? You should! This time we talk about marketing, advertising … and Amazon. A platform that has broken records in the US and continues to climb, do you not complete investing in it in 2020? You should!
And it is that, this upward trend in Amazon advertising does not seem to be going back in the near future. It is estimated that advertisers in the United States will spend about 4.61 billion dollars using the platform, far from decreasing it is 144.5% more than in previous years.
According to these data, Amazon would obtain a 4.1% share in the digital advertising market explainer animation video agency in the United States, surpassing the large platforms so far such as Microsoft and Otah and becoming the third largest online advertising company in the country.
An increase in company spending
One of the secrets of this favorable trend is the fact that Amazon has a very extensive and increasingly entrenched audience, a public also willing to invest from which this platform obtains real data on consumer behavior, not just demographic or interests. And this for advertising and marketing of a company is pure gold.
Organic growth is the main driver for brands, and companies plan to make larger investments in digital advertising in general, so advertisers on Amazon no longer come only from e-commerce, but also from other businesses that are joining the trend.
Will Amazon’s growth affect Facebook and Google?
One of the questions that come to mind in the face of the growth data of digital advertising on Amazon is the repercussion that this change may have on important digital companies such as Facebook and Google, something that does not seem to happen in the short term but it can evolve in another way. In fact, investments in these channels in terms of marketing and advertising will continue to increase in 2020.
However, Amazon has the ingredients to become a very powerful large digital ad business, the key to which is simply to sell more impressions to advertisers. Of course, it is impossible to detect how much of the business comes from your own ads and how much from facilitating ad transactions across the web.
Still, thanks to the ad technology tax that accounts for a significant portion of viewing expenses, there is no exact way for a digital ad seller, even Facebook or Google, to achieve higher earnings rankings without also benefiting from those sources from income.
At this time the advertising business on Amazon is maturing slowly but it promises to be a trend in 2020 in the marketing and advertising departments of companies. Some time ago there were certain complaints about the functioning of the interfaces that are solved very little by little and with this slow progression, their income continues to increase towards a safe place and a definitive consolidation of Amazon advertising.