Amazon Becomes Third Largest U.S. Digital Ads Platform

Amazon’s advertising business continues to skyrocket, taking the third spot behind Google and Facebook. Amazon’s annual digital ads in the U.S. projection has been revised to $4.61 billion from the previous estimate of $2.89 billion as published by eMarketer. This still only makes up 4.15% of digital ad revenue in the U.S. however it is growing at a rather fast past while Google and Facebook’s ad revenues are decreasing. It is projected that these two giants will make up 57.7% combined US digital ad revenue in 2018, a decrease from 59.1% in 2017.

The increase in Amazon’s annual digital ad revenue comes from consumers starting their online product searches on Amazon rather than on Google. The mobile advertising business on Amazon has also increased 242% since last year. Amazon has significantly increased the amount of pay per click advertising impressions in their search engine results page creating more opportunities for sellers to gain fast traffic to their product listings.