Estimate: Amazon to Become 3rd Largest US Internet Advertising Platform in 2018

New estimates published yesterday peg Amazon at claiming 4.1% of the overall US internet advertising market, passing Oath and Microsoft. eMarketer estimates Amazon’s total ad revenue for the year at USD $4.61 billion. It estimates Google at 37.1% and Facebook at 20.6%.

Our take:

  • Facebook sits higher in the advertising funnel than Google, and Google sits higher in the advertising funnel than Amazon. As Amazon increases the sophistication of its ad offerings, which it has done significantly in the last couple of years, Amazon should be able to grow its ad revenue by double digit percentages annually just by fleshing out queries related to purchase intent.
  • Amazon poses a more direct threat to Google than Facebook in the near term for two reasons. One, consumer behavior could increasingly shift to use Amazon as the default search engine for queries related to e-commerce purchase intent, rather than Google. And two, Amazon is investing in building its ad network off of Amazon as well, which could begin to encroach on AdSense.



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