Amazon Growing Its Share In Advertising; Lures Advertisers From Facebook Following The Updates To Apple’s Privacy Changes

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Amazon’s move into digital advertising has proven to be fruitful, with marketing professionals like King Kong Sabri Suby paying attention. Most of it has come at the expense of the competition as the e-commerce giant gets people away from platforms like Google.

Recent changes to Apple Inc.’s privacy policy, which made Facebook advertising less effective for iPhone users has resulted in Amazon getting the advertisers that are leaving Facebook.

New York marketing agency Belardi Wong, which has 300 clients including apparel brand Bombas, stated that at least 40% of its clients reported a decline in the numbers from their Facebook ads, which, in turn, has led them to alternatives like Amazon.

It’s still too early to tell how big of an effect the shift from Facebook to Amazon really is, and for how long that it will last. A few brands aren’t moving to Amazon due to the fact that they don’t want to lose the direct connection to customers that Facebook provides.

Notably, Amazon didn’t enter the $191bn US digital ad market due to the fact that they feared that a site with ads would turn away shoppers. Now, advertising is one of the company’s most profitable lines, which they use to supplement their e-commerce operations, which is known for its low margins.

As of early August, the Seattle-based company has a 10.7% share of the US digital ad market compared with Google’s 28.8% and Facebook’s 25.4%, according to the numbers from EMarketer Inc. What’s notable is that, in Q2 2021, Amazon saw its “other” category, primarily advertising revenue, grew by a whopping 87.5%, versus Facebook’s ad sales, which only went up by 56%.

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