Amazon ranks third behind Google & Facebook in ad forecast

Amazon Forecast to Be No. 3 Digital Advertising Player in 2018

Amazon Forecast to Be No. 3 Digital Advertising Player in 2018

In 2018, Amazon will generate $4.61 billion in U.S.ad revenues, higher than the $2.89 billion eMarketer had projected in March, eMarketer now projects.

Amazon's US digital advertising business will more than double its sales this year, eMarketer forecasts, placing the company behind only Google and Facebook in the rankings of online ad spending.

Amazon's bullish run of sentiment continues apace in the latest ad forecast to be compiled by eMarketer, which elevates the ecommerce giant to third place behind Google and Facebook in its ranking of U.S. digital ad platforms.

EMarketer credits strong organic growth in Amazon's ad revenues, along with accounting changes that now classify some ad services as revenues. EMarketer forecasts increases of more than 50 percent per year through at least 2020, with a 7 percent share of all USA digital ad revenue by then.

That's the conclusion of the latest forecast from eMarketer.

Google and Facebook are still far ahead of Amazon and the rest of the pack.

Amazon Forecast to Be No. 3 Digital Advertising Player in 2018

To a large extent, advertising success lies in converting the digital ads clicks to purchases. Earlier this month, Amazon announced it is making it easier for advertisers to buy ads on and off its properties.

"That increased search traffic gives third-party sellers a reason to increase bids for keywords on Amazon", she says.

Advertising is "now a multibillion-dollar business for us", Amazon CFO Brian Olsavsky said on the ecommerce giant's Q2 earnings call July 26.

While the forecast puts Amazon in the top three, it's a distant third. "That's a major reason that we might have underestimated what kind of growth would come through by the first half of the year". That segment recorded $2.1 billion in sales during Amazon's most recent quarter, more than double the year-earlier figure.

Existing Amazon merchants and brands are among the customers buying ads on the site, as well as authors and other advertisers targeting Amazon customers.

In 2018 Google and Facebook are expected to control 57.7% of combined USA digital ad revenues, down from 59.1% previous year.

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