According to eMarketer, Amazon's share of the US digital ad market in 2020 surpassed 10% for the first time.
With marketers trying to reach homebound shoppers who shopped online during the pandemic, Amazon observed a 53% growth in ad business to $15.73 billion. This growth pushed the ecommerce giant's market share to 10.3% last year from 7.8% in 2019.
eMarketer forecasts that Amazon's US ad business will grow another 30% and exceed $20 billion for the first time this year. By 2023, the ecommerce giant's ad business will capture a more significant portion and surpass $30 billion.
To compete with Amazon, Google and Facebook have expanded their ecommerce capabilities. eMarketer's Nicole Perrin said, "Both companies have a long way to go before catching up with Amazon in the world of e-commerce, but they recognize that they stand to lose digital ad business to the e-commerce giant."
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