In 2018, Amazon made $10.1B from advertising, up 115% from the previous year:
of total digital ad spend in 2019 versus 2018, per a Cowen survey. Meanwhile, they expect their spend on core Facebook to fall by 3% to 17% by 2020, and Google search to fall by 4% to 25% of total digital ad spend.
While Amazon is taking share from the duopoly, it likely won't overtake either player in the near future. As of 2018, Amazon's ad business remains a fraction of the ad spend that has gone to Facebook and Google . Amazon will narrow that gap some — it's projected to take in sales of $38 billion by 2023, per PRG estimates — but it's not going to end Facebook and Google's reign any time soon.
What do Amazon's ad offerings look like? Amazon sells ads across its the entirety of its sprawling e-commerce and media empire, and display ads are its most common format. It's been testing more and more ad products of late — ranging from its devices to influencer marketing — attempting to widen its appeal. Here's a brief rundown of some recent developments:Sponsored Products display ads in search on its AmazonFresh grocery e-comm platform in the US. The AmazonFresh ad product could foreseeably help Amazon take greater share of CPG brand ad budgets. While these ads could certainly drive conversions through AmazonFresh, brand awareness was noted by some as the superior opportunity for CPGs.
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