Advertisers are expected to shift focus to the e-commerce platform in 2020.
Though the e-commerce giant’s ad revenue grew by 117% from $4.6 billion in 2017 to $10.1 billion in 2018, advertisers are not massively shifting from the Google-Facebook duopoly according to Forrester analyst Collin Colburn. The Market research firm also anticipates that advertising will continue to be a focus for Amazon, and a substantial shift will be starting in 2020.
This piece states that Amazon’s access to consumer data is one of the prime reasons contributing to its growth in advertising. However, the company needs to overcome limitations like poor user interface and lack of basic capabilities relative to Facebook and Google.
The e-commerce giant needs to expand its roster of non-endemic advertisers to get a more significant share of the market. Forrester also expects Amazon to expand into new industries like Healthcare.
[4 minute read]