Amazon gaining ad dollars due to Facebook’s privacy woes

Online retailer likely to double ad revenue in next 2 years

e4m by exchange4media Staff
Updated: Jan 14, 2019 2:39 PM

Amazon has been gaining all the advertising dollars that would have gone to Facebook, if not for the latter’s privacy issues, a study has revealed. 

As per media reports, it has been projected that Amazon is likely to double its ad revenue from US ad buyers in the next two years with its share of digital ad spending increasing to 12 per cent by 2020. 

On the other hand, Facebook, which has been badly hit by defections due to privacy scandals, is expected to lose 3 per cent of market share during the same period. 

Google and YouTube have also been affected but their losses will be less severe, the study has found. 

However, Facebook continues to occupy the second place with a 20 per cent share of the total US ad spend, as recorded in 2018, much ahead of Amazon’s 3 per cent stake.  

In some good news for Facebook, Instagram has posted a rising digital ad share, thanks to the success of its ‘Stories’ app with some reports saying that its share of digital video budgets from ad buyers will double between 2018 and 2020. 

Advertisers have been drawn towards Amazon due to the improved conversion rates it offers and its unique position of being able to connect ads to purchases on the same page. 

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