Amazon continues to capture a growing share of search ad budgets

New Ideas in MarketingEssential news for marketers, summarised by YouGov
April 05, 2019, 4:38 PM UTC

Marketers are allocating more of their search ad budgets to Amazon and gradually reducing investment in Google. 

London-based WPP PLC spent $300 million on Amazon search in 2018, doubling from $100-150 million in 2017. Last year, Omnicon’s clients spent 20-30% of their search ad budget on Amazon alone.

Research firm Jumpshot reports that this increase is attributed to change in user behaviour, as 54% start searching for a product directly on Amazon. Also, as a marketplace, ad campaigns on Amazon directly affect sales. Amazon is facilitating this growth by investing in its inventory, ad platform, and formats.

However, Amazon’s growth is a long way from surpassing the digital ad spending on Google and Facebook which accounts for a combined total of 57.7%, compared to Amazon’s 4.1%. This puts Amazon at number three out of the digital ad vendors last year in the US.  

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