E-commerce giants Amazon is poised to make more revenue in the forthcoming years from advertisements. Based on statistics presented by TradingPlatforms.com. In 2020, Amazon’s advertisement revenue increased from an estimated $10.31Bn, and in 2019 it was $15.73Bn, i.e., a 52.5% YoY increase. Amazon is estimated to exceed the $20Bn mark in advertising revenue in 2021 and almost double by 2023 to $30Bn. Amazon also gained a bigger share of the advertising revenue marketplace, accounting for 10.3% of total advertising revenue in the US compared to only 7.8% in 2019.
Amazon’s $15Bn Revenue in 2020 is Expected To Double By 2023
Amazon Continues to Dominate in The Ecommerce Channel Advertising
In 2021, Amazon’s search advertising is forecast to rise to $14.53B, raising its share of US search advertising spends to 19% in contrast to only 13.3% in 2019. Amazon is also estimated to surpass the 20% share mark of all US advertising search spends from the end of 2022.
E-commerce channel advertisements, composed of search advertising and display advertisements on its retail properties, account for a huge portion of Amazon’s whole advertisement company — an estimated 89%. In 2021, the eCommerce channel advertising market was valued at $24B. 76.2% of that can be controlled by Amazon that dominates the advertisement format is initiated.
As additional proof of Amazon’s dominance in this format, the next biggest share belonged to Walmart that accounts for only 6.5% of their e-commerce channel advertising industry. The remaining 11% of Amazon’s advertisement revenue comes from advertisements on its video programs and off-property advertisements sold through Amazon Delivery Service Program (DSP).
According to Rex Pascual, Editor of TradingPlatforms.com, consumer behavior was already trending towards the electronic world, but the 2020’s pandemic is expected to rise even more. E-commerce is now the new standard, and Amazon is poised to profit greatly from the impending electronic future which lies ahead. Investments such as its newly announced partnership with all the NFL place the E-commerce giants in a solid position for a significant increase in the digital world.