Amazon is posing a serious threat to the Google and Facebook duopoly’s advertising business. Their advertising business is set to reach over $3 billion by 2019. In this week’s ad ops news video, we take a closer look at Amazon’s advertising business, their Unified Ad Marketplace, profit statistics and more.
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Amazon will be the first to disrupt Google & Facebook duopoly’s digital advertising revenue.
59% of digital ad spending goes through Facebook and Google and has dropped 2% since 2017.
It’s also estimated that their market share will continue to fall.
Amazon is the main reason behind the duopoly’s decline.
They have entered the advertising market, are leveraging first-party consumer data, establishing a DSP business and launching a header bidding solution.
It’s called the Unified Ad Marketplace (UAM)
Amazon’s digital ad profit doubled in 2017 to $2 billion and is forecasted to reach over $3 billion by 2019.
WPP, the largest advertising company in the world, spent $200 million with Amazon in 2017 and is set to increase to $300 million in 2018.
Amazon also does not buy ads from Google anymore.
All of this might be good news for publishers.
Smaller publishers can get the opportunity to test interest in ads apart from the duopoly and offer highly niche targeted ads.
Advertisers will also benefit from Amazon’s rise in power by advertising to a broader range of audiences beyond the duopoly.
Although lot’s of benefits may come from Amazon disrupting the duopoly, it’s not without growing pains.
Programmatic advertising has declined thanks to GDPR, and US publishers are scared of advertising in the EU due to fines and confusion.
The more ad inventory bought from Amazon, the stronger it’s position while decreasing Google and Facebook’s hold on the market.