First consumers, now advertisers Leave Google for Amazon.
It makes sense for advertisers to go where their customers are.
“Follow the money” is a catchphrase used to help lead you to where true power lies. And investors who follow the money will quickly learn that Amazon, and not Google, is quickly becoming an advertising dollar powerhouse, writes TheMotleyfool.
A recent CNBC report indicated that some advertisers are abandoning the search giant in favor of Amazon, moving more than half of their ad budget to the e-commerce leader because that’s where people turn first to search for products.
Consumers already prefer Amazon to Google when searching for a product. Approximately 55% of people begin their search on Amazon before checking other websites, and lately Amazon has been stuffing its pages with ads to leverage its digital real estate. Amazon is now the third-largest ad platform behind Google and Facebook.
According to research firm eMarketer, Amazon will bring in $4.6 billion worth of revenue for sponsored ads this year, up from $1.8 billion in 2017. The company is on track to grow these ads to $10.9 billion by 2020, writes USA TODAY.
As Amazon enters its busiest season, the holidays, shoppers will be confronted in their searches by products, not the best reviewed or best-selling options, but the ones that manufacturers paid for to be the first thing consumers see at the top of the list.
This flow of ad dollars to Amazon holds risks as well. It’s already been noted that Amazon pages are chockablock filled with advertising, and more ads on the site could degrade the experience.
USA TODAY reached out to Amazon, but the company declined to comment.
