E-commerce sales growth is accelerating and Amazon is taking a bigger share of those sales every year. In it’s latest trends report, Mary Meeker reported that the retail giant is owning $129 billion of e-commerce gross merchandise value (GMV), which represents a 28% share of the market. But the surprising thing is that while Google is trying to grow its commerce platform via Google Home Ordering, Amazon is growing its advertising business.
According to eMarketeer, Amazon’s advertising revenue will increase by 93% in 2019, and the new forecast shows Amazon with a 4.15% share of the U.S. digital ad market. The company also now ranks Nr 3 among digital ad platforms in the U.S.
Brands shifting YouTube ad spends to their Amazon page.
Among many other brands, Levi Strauss & Co, for example, has found success with both advertising and sales on Amazon: the brand funnelled ad spend away from YouTube and directed ad referrals to its branded Amazon page, boosting its share of ad impressions on Amazon from 3% to 30% (source: Gartner) !
With a distribution center opening next year at the Dutch frontier, and more than 50% of the French shoppers declaring making their search on Amazon first, bypassing Google, the development of Amazon in Europe is happening faster than you think, and brands certainly don’t want to get left behind ! (Photo by rawpixel on Unsplash)