Amazon Ad revenue in the US projected to double to US$30bn by 2023
TradingPlatforms.com has projected that Amazon’s advertisement revenue will reach US$30bn by 2023, almost double from $15.73bn in 2020.
The online education and comparison platform for online traders, TradingPlatforms.com, has shared its projections for Amazon’s ad revenue, and the increase is considerable. In 2020, Amazon’s ad revenue increased from an estimated US$10.31bn in 2019 to $15.73bn, marking a 52.5% year on year increase. It is expected that Amazon will surpass the $20bn mark before the end of 2021.
According to the platform, Amazon is also projected to surpass the 20% share mark of all US ad search spending by the end of 2022. A large percentage of Amazon’s entire ad business is in e-commerce and channel advertising, totalling an estimated 89%. The remainder of its ad business draws its revenue from its video platforms and off-property ads sold through Amazon Delivery Service Program (DSP.) To date, 76.2% of the $24bn eCommerce channel market is controlled by Amazon as it continues to lead the advert format is created. The second-largest share belonged to Walmart, which accounts for just 6.5%.
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Rex Pascual, Editor at TradingPlatforms.com, commented; “Consumer behaviour was already trending towards the digital world but 2020’s pandemic expedited this trend even more. E-commerce has become the new normal and Amazon is poised to benefit greatly from the pending digital future that lies ahead. Investments such as its recently announced partnership with the NFL put the E-commerce giants in a strong position for significant growth in the digital world.”
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