A recent survey of 52 senior US ad buyers, conducted by investment bank Cowen in December, has revealed that Amazon’s share of their digital adspend is forecast to rise from 7% in 2020 to 11% in 2022.
Amazon’s projected ad business growth
- According to CNBC, that means Amazon is positioned to be the leading share gainer among the seven major digital ad companies that the ad buyers were asked about. The other platforms included Google, Facebook, Snap, Twitter, Pinterest and TikTok.
- YouTube and TikTok are expected to gain about 1% of share over the two-year period, while the other platforms could remain flat or even experience share erosion.
- The Cowen analysts estimated that Amazon’s ad revenue, which largely sits in the “other” category of its earnings report, would grow to $26.1bn in 2021, rising to as much as $85.2bn by 2026.
- Excluding China, Amazon’s ad business’ share of global digital advertising is expected to increase from 8% in 2020 to 13% in 2026.
Other report details
- Survey respondents ranked Amazon second only to Google in terms of return on investment (ROI), noting that consumers visit the platform to purchase items and not just to scroll.
- They also said Amazon is least likely to be impacted by Apple’s forthcoming ad privacy rule that will require users to opt-in to ad-tracking when opening an app that uses it.
“Amazon seems relatively well positioned compared to peers, helped by high conversion from within the Amazon storefront, lessening reliance on other sites / apps for attribution” – Cowen.
Sourced from Cowen, CNBC