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.
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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.
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