Marketing 2 min read

Ad Revenue of Amazon to Reach $40 Billion By 2023

After being declared the world's most valuable brand of 2019, Amazon's ad revenue is expected by analysts to reach $40 billion in the next four years.

Image courtesy of Shutterstock

Image courtesy of Shutterstock

Juniper recently published a research titled Future Digital Advertising: Artificial Intelligence & Advertising Fraud 2019-2023, where it predicts the rise of Amazon’s ad revenue

According to the recent forecast from Juniper research, Amazon’s advertising revenue will rise by 470 percent to reach $40 billion by 2023. And the revenue would be driven primarily by artificial intelligence and machine learning.

The tech already seems attractive to advertisers that are in business with Google and Facebook today. But, it’s yet to reach its full potential.

Juniper predicts that most advertisers will turn to AI in 2020. And why not? Machine learning enables better ad targetting, which would match the return on ad spend.  As its demand increases, so would the cost per ad.

Juniper forecasts that the total ad spends on digital advertising will ultimately rise from $295 billion this year to $520 billion in 2023.

Let’s delve a little deeper.

Forecasted Digital Ad Revenue Distribution Between 2019 and 2023

Juniper forecasts that Google’s advertising revenue will rise to over $230 billion by 2023.

During these four years, the search engine giant will also experience a 1 percent drop in its global share of digital advertising spend. This is due to the emergence and growth of competing platforms, such as Baidu and Amazon.

With a market share of 33.7 percent, Amazon already dominates the eCommerce marketplace in the United States.

Yet, its digital ad revenue from the U.S will grow by 53 percent, according to eMarketer. Nearly half of this revenue – about 43.9 percent – will come from mobile ad spending.

Why the significant increase, you ask?

Amazon is a favorite among digital shoppers in the U.S.

According to eMarketer’s survey of U.S. digital shoppers, 78 percent consider Amazon their favorite shopping platform. Also, 56 percent said they would like to make more future purchases on the platform.

On the other hand, only 26 percent could say the same about Google, while 18 percent prefer different platforms.

The search engine giant also fell behind consumer’s preference to shop in stores. About 47 percent of U.S. digital shoppers would rather do their shopping in-store.

Read More: Why Amazon is Dominating Google Shopping

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Sumbo Bello

Sumbo Bello is a creative writer who enjoys creating data-driven content for news sites. In his spare time, he plays basketball and listens to Coldplay.

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