Amazon builds an ad business

Rob Williams

Amazon Advertising says about 80% of its customers use the e-commerce platform to discover new products or brands, citing “The 2018 Amazon Shopper Behavior Study” from CPC Strategy and Survata in February 2018.

Amazon’s share of the U.S. digital ad market is forecast to grow from 4.1 percent in 2018 to 7 percent in 2020, according to an estimate by researcher eMarketer.

Google and Facebook’s combined share of the U.S. digital ad market is forecast to decline from 57.7 percent in 2018 to 55.9 percent in 2020.

Company 2018 2020
Google 37.1% 35.1%
Facebook 20.6% 20.8%
Amazon 4.1% 7%

Source: eMarketer

34.2 percent of U.S. e-commerce marketers currently spend 10 percent to 25 percent of their digital ad budgets on Amazon, according to a September 2018 survey from Third Door Media.

80 percent plan to boost their ad spending on Amazon next year, and 19.5 percent plan to increase budgets by at least 50 percent.

Top Amazon Advertising Products Ranked by Marketers

Amazon Marketing Services 86.5%
Sponsored products 79.8%
Headline search ads 72.5%
Product display ads 66.8%
Amazon Media Group 58%
Amazon display ads (mobile/desktop) 55.4%
Both AMG and AMS 50.3%
Amazon image and text ads 45.6%
Amazon Advertising Platform 30.1%
Amazon in-stream video ads 21.2%
Kindle & Fire Tablet lock screen  13.5%
Fire TV home screen 10.9%

Source: Third Door Media

Source: Amazon Advertising

 

 

Study: Amazon regains lead in smart-speaker market

Rob Williams
Photo: Fabian Hurnaus/Pexels

Amazon regained the lead in smart-speaker market share during the third quarter after lagging behind Google during the prior six months, according to a report from researcher Canalys.

Amazon promoted its Echo smart speakers going into its annual Prime Day shopping event, while Google cut prices of its Google Home smart devices to remain competitive with Amazon, Canalys said. Google was the top seller of smart speakers during the second and third quarters, the researcher said.

Smart-speaker shipments more than doubled (up 137 percent) to 19.7 million in Q3 2018 from a year earlier.

Amazon shipped 6.3 million Echo smart speakers that have its Alexa voice assistant, while Google sold 5.9 million of its Google Home devices that have Google Assistant.

While Amazon, Google and Amazon are the top sellers of smart speakers in the United States, Alibaba, Xiaomi and Baidu are the leaders in mainland China.