[eMarketer] US consumers’ digital spending boosts Amazon’s e-commerce and ad businesses
A Covid-19 inspired shift to digital shopping and online spending among US consumers benefitted various e-commerce platforms top among them Amazon.
Besides growing its online business by double digits, the e-commerce giant also recorded a growth in advertising business by 52.5 per cent.
In US the share of Amazon’s ad revenue hit $15.73 billion which saw its market share rise to 10.3 per cent compared to 7.8 per cent in 2019 in what is attributed to growth of affiliated properties among them, Twitch, Amazon Fire TV and IMDb TV.
According to eMarketer, Amazon’s US ad business is projected to maintain an upward trajectory this year to hit more than $20 billion and rising to more than $30 billion by 2023.
Nicole Perrin, eMarketer principal analyst, Insider Intelligence: “For advertisers with goods to sell in the marketplace, Amazon ads were a key performance lever throughout 2020, especially with the cheap ad opportunities available in Q2, when many sellers suffered out-of-stocks and dropped out of the auctions. Amazon advertising has long been a must for marketplace participants, and that hasn’t really changed—though more brands and retailers are considering Amazon from an ecommerce perspective due to the pandemic.”