Amazon jeopardizes Google, Facebook ad growth
Amazon is a big threat to Facebook and Google’s ad profits, according to SocialFlow CEO Jim Anderson.
Amazon is expected to more than double its U.S. digital-advertising revenue in 2018, according to research firm eMarketer, moving past Oath and Microsoft to the third place behind Google and Facebook.
“Amazon is now the No. 3 in the digital-advertising space and we know that every industry that Amazon touches has changed significantly,” Anderson told FOX Business’ Stuart Varney on Wednesday. “So I think that Google and Facebook are both keeping an eye on Amazon because … when you go to Amazon you go to buy things and so commerce and most advertisers ultimately want to sell things. Amazon is a really compelling play for a lot of advertisers.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 195.78 | -2.15 | -1.09% |
| FB | NO DATA AVAILABLE | - | - | - |
| GOOGL | ALPHABET INC. | 169.24 | -2.05 | -1.20% |
U.S. advertisers are likely to spend $4.6 billion on Amazon’s platform this year, accounting for 4.1 percent market share in the U.S.
Even so the e-commerce giant’s position is a far cry from Google, which leads the digital-ad space with 37.1 percent and Facebook’s 20.6 percent of market share, eMarketer estimated.
Neither Facebook, Amazon nor Google offered a comment in response to FOX Business' request for a statement.
Meanwhile, Facebook reported mixed quarterly results on Tuesday, topping analysts’ earnings expectations but missing on quarterly revenue and user growth. However, Anderson said the strength of their advertising business is a positive sign.
“The advertisers who fuel 98 percent of Facebook’s revenue seem to still like it,” he said.
