Marketing 2 min read

Amazon's Search Advertising Will Grow While Others Shrink

Image courtesy of Shutterstock

Image courtesy of Shutterstock

Last year, Amazon surpassed Microsoft to become the second-biggest online search advertising in the U.S. behind Google. Now a recent report suggests that the retail giant’s search market will grow in the coming years while others shrink.

Google still dominates the growing search ad market in the United States. However, other smaller players such as Amazon, Walmart, eBay, and Target are starting to make impacts.

The market tracker suggests that Google’s share of search advertising ad revenue will drop within the next two years, while Amazon increases. In other words, the retail giant will ultimately claim the search market share that the search engine company currently owns.

How is this possible, you ask?

According to eMarketer, ads that are displayed alongside query results at shopping sides tend to catch consumers’ eyes. This is especially true when consumers intend to make a purchase.

In a statement, eMarketer’s principal analyst, Nicole Perrinsaid:

“Amazon’s ad business has attracted massive increases in spending because advertisers can reach consumers during product queries, a time when they’re ready to buy.”

Also, the retail giant provides a better measurement and targetting tool, which advertisers find attractive.

The Future of Search Advertising Market According to Forecast

According to eMarketer’s forecast, the United States’ search ad market will grow by nearly 18 percent this year to reach $55.17 billion.

Although Google will claim over 73 percent of the search advertising revenue this year, the number will drop slightly in the coming years. By 2021, the search engine giant’s share will own about 70.5 percent.

Amazon, on the other hand, will see its share of the search ad market grow from 12.9 percent this year to 15.9 percent by 2021. The market trackers predicted that Amazon’s search business would increase by nearly 30 percent in 2019 to $7.09 billion.

The forecast noted:

“Polling suggests that most product searches now begin on Amazon, causing the No. 2 search player to grow rapidly and steal share from its larger rival.”

Aside from Amazon, the search shares of companies like Walmart, Target, eBay, and Pinterest are also growing at Google’s expense.

But the search engine giant is not the only company affected by this proliferation.  Other players are expected to lose market share in the coming years.

eMarketer predicts that future shifts in the search advertising market will also affect Microsoft, Verizon Media, Yelp, and IAC, but to a lesser extent.

Read More: Amazon’s new Sponsored Display Ads Offers Product Targeting Tools

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