Home » Advertising-Promotion-Marketing, Amazon, Social Media » Amazon will win advertising dollars away from Facebook amid privacy concerns

Amazon will win advertising dollars away from Facebook amid privacy concerns

10 January 2019

From re/code:

Amazon could double its ad revenue among top US ad buyers in the next two years, giving it 12 percent of total ad spending in 2020. Meanwhile, Facebook’s main social network platform is expected to lose 3 percentage points of market share in that time.

That’s according to a new Cowen survey of 50 senior US advertising buyers in late December that showed Amazon is expected to gain more digital ad market share by 2020 than any other platform.

These ad buyers controlled a total of $14 billion in digital ad budgets in 2018. The investment bank weighted the data so that bigger spenders factored in accordingly.

Ad buyers are mostly pulling their growing Amazon spend from other digital platforms, the survey found.

Google and YouTube are also expected to lose a modest amount of ad revenue share through 2020. Facebook-owned Instagram is expected to see a 2 percentage point increase in that time, helping to balance out its parent company’s loss.

. . . .

Facebook is particularly vulnerable, thanks to its recent spate of privacy issues.

Of the 50 ad buyers, 18 percent said privacy concerns would lead to decreased ad spend on Facebook, more than any other platform, according to the Cowen survey.

But it’s also likely Facebook’s stagnating daily active user growth in the US and Canada— its most valuable markets — is at least as big a factor as its myriad privacy mishaps.

Link to the rest at re/code

Advertising-Promotion-Marketing, Amazon, Social Media

4 Comments to “Amazon will win advertising dollars away from Facebook amid privacy concerns”

  1. “… survey of 50 senior US advertising buyers …”

    A highly trusted group that will say whatever they can that will make them the most money …

    MYMV and you not be fooled.

  2. I fear that this may mean more sponsored items in the book search results. Not a pleasant prospect.

    • Probably.
      But it won’t be the only way Amazon boosts its advertising revenues. There is always this:

      http://www.aftvnews.com/imdb-freedive-is-amazons-new-free-ad-supported-movie-and-tv-streaming-service/

      IMDB FREEDIVE is going to bring in a *lot* of ad money with it being instantly available today on 40M FireTV devices. And no doubt it will be moving to the Fire Tablets and eventually the android world.

      A sign of things to come.
      Another sign is Apple working to put iTunes and Airplay on Samsung, LG, Sony, and Vizio TVs.
      A third, earlier sign is what the CW has been doing with their dual ad-supported streaming apps.

      A lot of ad money is going to move out of facebook, Google, and broadcast TV to online streaming.

  3. Senior US advertising buyers aren’t the only ones unhappy with Facebooks privacy issues as well as the accusations of illegal political interference. I still have an account but do not post there and do not advertise with them. It’s hard to know how many people have stopped using it.

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