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Digital advertising: Facebook and Google are losing. Amazon is looking to take advantage

Amazon grows in markets that were not necessarily its niche.

The digital advertising market will represent revenues of more than 311 billion dollars in 2019.

Google and Facebook account for more than 50 percent of digital advertising.

We know that Amazon is a giant in e-commerce that is gaining prominence in various sectors that were not properly its natural ecosystem, such as the physical retal or the Internet of things, but there is another one in which it grows at an impressive rate: digital advertising … something that should worry Facebook and Google.

We speak of a market that is desired by a large number of technology companies, because it is a market that only for this 2019 is estimated with a value greater than 311 billion dollars globally, according to projections in Statista.

And, it is indisputably Facebook and Google are the ones that dominate this field, in fact, according to data from Visual Capitalist, between both they account for 57.6 percent of the entire market share.

To understand its potential, let’s see what both companies obtained only during 2017, where the Mountain View reported advertising revenues of more than 95 billion dollars, while the Menlo Park did more than 39 billion.

A giant of e-commerce on the hunt

But, the truth is that the two big ones of digital advertising are wounded. Facebook continues to lose its appeal to the younger generations and has already already reduced its number of new users, which, added to the multiple conflicts that affect its corporate reputation and people’s trust, puts it in a complicated situation.

So much so that a recent study carried out by analysis firm Cowen, points out that the social network could lose up to 3 percent of the advertising market by 2020.

In the case of Google, the situation is less complicated, because although it has gone through serious problems related to programmatic advertising and content related to messages of hatred, discrimination and radicalism, as well as scrutiny for the privacy of user data ( both in Europe and the US), has undertaken several changes in its advertising policy that will help regain the confidence of advertisers.

However, in both cases they have opened a door for someone to take advantage of it and everything indicates that this would be Amazon.

The same Cowen report points out that Jeff Bezos’ company will account for 12 percent of the total spending on digital advertising in 2020 and, although its forecast is for the US market, it is unquestionable that this will be replicated to a greater or lesser extent. the international context.

Why is it relevant? The research points out that Amazon would double its advertising revenue in the next two years and, if we consider that eMarketer data estimate that the Seattle firm received some 4,600 million for advertising in the last year, its earnings in this regard could exceed 9 billion.

Although, it would still be far from Google and Facebook, Jeff Bezos’ company is already the third largest in digital publishing and, if its vertiginous growth is combined with losses (although modest) of the two large ones, the gaps could be reduced in a way considerable.

For all these reasons, Amazon’s growth in digital advertising is something that every specialist in digital marketing must bear in mind.

Also published on Medium.

Published inAd Tech

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