According to an eMarketer forecast which was released on 15th October 2019, Amazon is eating a big slice of Google’s online search advertising in the US because businesses target the shoppers of the giant online platform.
The market tracker said that “Google will continue to dominate the market for serving up ads along with the search results, but Amazon and smaller players including Walmart, Target, eBay, and Pinterest are seeing their shares grow”.
Ads that are displayed along with query results at the shopping sites attracts the audiences due to which they end up buying something.
“Amazon’s ad business has attracted massive increases in spending because advertisers can reach consumers during product queries, a time when they’re ready to buy,” said Nicole Perrin principal analyst for eMarketer.
“Amazon has also rolled out better measurement and targeting tools, making it even more attractive for advertisers.”
according to an eMarketer forecast, the U.S. search ad market would grow around 18 percent this year to reach $55.17 billion, with Google earning $40.33 billion, or slightly more than 73 percent.
Google remains dominant in the market, but according to the forecast its share will drop to 70.5 percent by 2021.
While on the other hand, share of the search ad market of the Seattle-based e-commerce colossus will grow to 15.9 percent by 2021 from 12.9 percent this year.
“Polling suggests that most product searches now begin on Amazon, causing the No. 2 search player to grow rapidly and steal share from its larger rival,” the forecast said.
Amazon’s search ad revenue was predicted to grow around 30 percent this year i.e. to $7.09 billion.
eMarkerter said: “Last year, the company took the second-place spot in the US search ad market from Microsoft, which was forecast to have a 6.5 percent share this year”.
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