Amazon Ad Revenue to Top $11B This Year as Digital Overtakes Traditional Spend, Study Finds

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"By 2023, digital will exceed two-thirds of total media spending," according to eMarketer.

Digital advertising spending in the U.S. will in 2019 overtake traditional spending for the first time, research firm eMarketer projected Wednesday.

Total digital ad spending in the U.S. will grow 19.1 percent to $129.34 billion this year, surpassing the traditional ad pie of $109.48 billion, down from $114.84 billion in 2018, and accounting for 54.2 percent of total spending, it said. "By 2023, digital will exceed two-thirds of total media spending," according to the firm.

Mobile now makes up more than two-thirds of digital ad spending, totaling $87.06 billion in 2019, the eMarketer forecast shows.

Amazon, meanwhile, is emerging as a new ad powerhouse. "For the first time this year, the combined share of the duopoly (Google and Facebook) will drop, even as their revenues grow," eMarketer says. "The big winner this year will be No. 3 player Amazon, which continues to siphon share from the duopoly. Its U.S. ad business will grow more than 50 percent this year (to more than $11 billion). Its share of the U.S. digital ad market will swell to 8.8 percent in 2019, reaching nearly 10 percent by next year."

Google’s share will drop this year to 37.2 percent (and $48.1 billion) from 38.2 percent last year. Facebook’s share will reach 22.1 percent ($28.6 billion billion), compared with 21.8 percent last year.
"Amazon has a major benefit to advertisers, especially consumer packaged goods and direct-to-consumer brands," said eMarketer forecasting director Monica Peart. "The platform is rich with shoppers’ behavioral data for targeting and provides access to purchase data in real-time. This type of access was once only available through the retail partner to share at their discretion. But with Amazon’s suite of sponsored ads, marketers have unprecedented access to the ‘shelves’ where consumers are shopping."

Meanwhile, TV ad spending will decline 2.2 percent to $70.83 billion this year, "largely because there are no elections or big events, such as the Olympics or World Cup," eMarketer says. "The presidential election next year will propel TV ad spending back into positive growth."