Article – Amazon Advertising Projected to Grow Exponentially in 2021

According to a new survey from Cowen Research, Amazon is set to become the leading market share gainer among all the major digital advertising businesses both this year and next year. Amazon’s advertising segment will continue to see new growth as more spending comes from television, search, and other platforms, and will be further bolstered by the strong return on ad spend that has become typical of the platform.

Amazon’s ad business also appears to be less in danger of violating ongoing privacy issues that have been hotly debated, most notably Apple’s privacy changes for ad tracking on the iPhone. The survey was predicated on responses from 52 senior US ad buyers in December who represent over $15 billion in ad spend. Cowen asked these buyers about their views on Amazon, Google, Facebook, Snap, Twitter, Pinterest, and TikTok.

In discussing the percentage of ad spend they would allocate to each platform, they expect Amazon to rise from 7% in 2020 to 11% in 2022. While they expect YouTube and TikTok to grow only about 1% of market share over that same time period, they also suggested that the other platforms would remain flat or even see share erosion.

While they project Amazon’s ad revenue to rise to $26.1 billion in 2021, and $85.2 billion by 2026, they believe Amazon’s ad business will also assume a larger share of global digital advertising, projected nearly double by 2026. Amazon was also ranked second place in terms of return on investment out of all platforms, second only to Google search.

Amidst upcoming changes on the iOS platform requiring users to opt in to sharing personal data, it appears Amazon is least likely to be negatively impacted by IDFA regulations. “AMZN seems relatively well positioned compared to peers, helped by high conversion from within the Amazon storefront, lessening reliance on other sites/apps for attribution.” 

While many vendors continue to see increased demand from Amazon customers since the start of the pandemic, it appears that momentum is in no danger of slowing down. According to this high-level survey, Amazon Advertising is poised to top out the largest platforms in the world in Google and Facebook. Sellers can be certain of one thing when it comes to their business growth: there does not appear to a ceiling on Amazon.com.