Amazon’s making the duopoly a triopoly

SHAREEN PATHAK | September 26, 2018

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New forecasting from multiple analysts places Amazon’s still-nascent advertising platform as poised to not only become the third leg of the advertising duopoly of Google and Facebook, but also overtake it.First up was eMarketer, which said it expected Amazon to be No. 3 in digital ad sales in 2018 with $4.6 billion in ad revenue in the U.S. That would mean that its acceleration in growth in ad revenue is putting it on pace to overtake Oath and Microsoft.There’s a few things Amazon has done right recently. One is that it is much more effective at monetizing its traffic than others are — even others in retail media. A quick look at Amazon’s own search results page shows how many more ads now appear above the fold than used to. Amazon’s recent moves to streamline its own business, getting rid of its confusing terminology of Amazon Media Group and Amazon Marketing Services in favor of an “Amazon Advertising” umbrella, is also making it more palatable — not only to agency ad buyers, but an increasing number of direct to consumer brands and those selling directly on Amazon. Another big move, according to eMarketer, has come from Amazon’s own increased push to what it calls non-endemic advertisers like auto companies. The message: Even if you don’t sell on Amazon, you can certainly and effectively advertise on it.

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