E-commerce giants Amazon are poised to earn more in the coming years from advertising. According to data presented by TradingPlatforms.com, Amazon is projected to almost double its ad revenue by 2023 to $30B – currently at $15.73B in 2020.
Amazon’s $15B Revenue in 2020 – Expected To Double By 2023
In 2020, Amazon’s ad revenue increased from an estimated $10.31B in 2019 to $15.73B – a 52.5% YoY increase. Amazon is also projected to surpass the $20B mark in ad revenue in 2021, and to nearly double by 2023 to $30B. Amazon also gained a larger share of the ad revenue market, accounting for 10.3% of total ad revenue in the US compared to just 7.8% in 2019.
Amazon Dominates Ecommerce Channel Advertising
In 2021, Amazon’s search ad business is expected to grow to $14.53B, increasing its share of US search ad spending to 19% compared to just 13.3% in 2019. Amazon is also projected to surpass the 20% share mark of all US ad search spending by the end of 2022.
E-commerce channel advertising, which is made up of search ads and display ads on its retail properties, accounts for a large part of Amazon’s entire ad business – an estimated 89%.In 2021, the eCommerce channel ad market was valued at $24B, 76.2% of which is controlled by Amazon which dominates the ad format it pioneered.
As further evidence of Amazon’s dominance within this format, the next largest share belonged to Walmart which accounts for just 6.5% of the e-commerce channel ad market. The remaining 11% of Amazon’s ad revenue comes from ads on its video platforms and off-property ads sold through Amazon Delivery Service Program (DSP.)
Rex Pascual, Editor at TradingPlatforms.com, commented;
“Consumer behaviour was already trending towards the digital world but 2020’s pandemic expedited this trend even more. E-commerce has become the new normal and Amazon is poised to benefit greatly from the pending digital future that lies ahead. Investments such as its recently announced partnership with the NFL put the E-commerce giants in a strong position for significant growth in the digital world.”