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Amazon Advertising, the third force of digital advertising?

August 15, 2019  | Subscribers Only

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Amazon is setting out its stall as the third major global digital advertising platform as its diverse and growing portfolio is taking aim at Google and Facebook. It posted revenues of over $10 billion in 2018 in its “Other” segment, which consists primarily of advertising sales. This marked 117% growth on the $4.7 billion generated in this segment in 2017.

Highlights:

  • Amazon’s “other” category, consisting mostly of advertising revenue, more than doubled to $10 billion in 2018
  • IHS Markit estimates Amazon’s share of the digital advertising market to be 5% in 2018 but will grow rapidly, driven by ad tech integration, coupled with effective utilisation of data for ad targeting
  • Investment into advertising-supported online video (AVoD) and connected TV will be key to Amazon’s growth in next five years

In this report:

  • Robust online video revenue growth has encouraged Amazon to go beyond search advertising
  • Amazon to leverage multi-platform ecosystem and shopper’s data to lure advertisers
  • Advertising technology integration and campaign measurement capability is key to Amazon’s success

List of tables and charts:

  • Amazon revenues by category and growth rates, Q1 2017 - 2019
  • • Digital ad revenues by company - 2018
  • • Online video ad revenues by company and online ad revenues growth

Number of pages: 7

Number of tables and charts: 3

Ryan Doherty

Research Analyst, Advertising, IHS Markit

Ryan Doherty is a research analyst for global advertising and media at IHS Markit, based in London.

Kia Ling Teoh

Senior Research Analyst – Advertising & Television Media, IHS Markit

Ms. Kia Ling Teoh is a senior research analyst, Advertising & Television Media at IHS Markit.

Research by Market
Media & Advertising
Category
Advertising
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