Tag Archive for: Amazon ads

US Search Advertising Continues To Flourish According To New Report

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Brands across the US are increasing how much they spend on search advertising, with the overall US search ad spend predicted to reach almost $112 billion by next year. That is nearly double the amount spent in 2019, according to the new report from Insider Intelligence.

US Search Ad Spend 2019-2026 graph

This year, the data says $99 billion is being spent on search advertising. Much of this is driven by Google, which receives about 56% of the total ad spend. Google is in fact driving much of the growth in this area, outpacing all other traditional formats. 

While Microsoft remains the second-leading search ad platform, the data indicates that other platforms like Apple and Amazon may eventually overtake it. 

Data shows that Apple Search Ads will receive $5 billion dollars alone in 2022 revenue thanks to new ad and placement options which allow brands to find less competitive ad space.

Meanwhile, Amazon is gaining ground as the best platform for bottom-of-funnel customers. 

Interestingly, the report indicates that TikTok is also a growing force in search ad spending. The new data shows that up to 40% of 18- to 24-year-olds in the US already prefer to use TikTok and Instagram for their searches instead of Google. This may explain why recent studies showed that brands spent 60% more on overall advertising on the platform. 

Mobile Vs. Desktop

Unsurprisingly, mobile search advertising spend is far outpacing desktop by about two-thirds and shows no sign of slowing down. 

One indication of this is the fact that more than half of the U.S. population was reported to have used a smartphone to make an online search in 2016. By next year, that number should reach 70% by 2023. 

Privacy-Focused Platforms Lose Steam

After years of slow growth, privacy-first platforms like DuckDuckGo appear to be losing traction with US searchers. This is reflected in other recent reports, including data showing that DuckDuckGo had fallen to less than 100 million daily searches in June. 

For more findings about the current state of search advertising, download the full report from Insider Intelligence here.

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Amazon Now Gets More Than 10% Of All Digital US Ad Revenue

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For years, two names have ruled the online ad game – Google and Facebook. Currently, that is still true, though a new analysis suggests Amazon is steadily expanding its ad business to be a sizable challenger to the Big Two.

Research firm eMarketer’s latest annual digital ad report shows that Amazon’s share of digital ad revenue broke two digits in 2020, earning 10.3% of U.S. online ad revenue. That’s a significant jump from 7.8% in 2019.

In actual dollars, the online retail giant’s ad revenue reached $15.73 billion, an increase of more than 50% from the previous year.

Should Facebook and Google Be Worried?

Amazon still has some ways to go before it’s ad platform is the size of Google or Facebook’s – both of which receive more than 20% of U.S. digital ad spend.

Still, eMarketer predicts the company will continue to increase its share of online ad revenue over the next few years until it is on par with the other two giants.

For Facebook, this might not be a big concern since much of Amazon’s advertising is driven by Amazon Prime video advertising and product ads. In their current form, both platform’s ads largely serve different purposes.

Google, on the other hand, might be getting a little nervous. Over the past few years, the search engine has been investing heavily into its online shopping services, as well as expanding YouTube’s advertising platform.

What Does This Mean For Brands?

Though this might have significant implications for the future of online advertising, nothing has really changed for the majority of brands who might use these platforms for their ads. 

However, it does serve as a reminder that there are more than just the Big Two online ad platforms. Many of the others out there may be a better fit, provide less competition, and allow you to reach your potential customers at a more ideal time. This is why it is important to know what each has to offer and invest your ad budget into the platform (or platforms) which make the most sense for you.

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Paid Search Ads are Becoming The First Advertising Choice For Retailers

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A new report shows that paid search ads are the fastest growing way to advertise online for retailers. 

According to the findings from eMarketer, retail advertisers in the US will spend a combined $13.12 billion on search ads in 2019, up more than 20% from last year. 

In 2020, it is projected that spending will grow even more, to $15.65 billion. 

While search engine advertising is an effective advertising method for most industries, the report suggests that retailers benefit more than other sectors due to specific tools and features. For example, it cites how search ads may appear in Google Maps and show local stock of specific products, which can help drive real-world traffic and sales. 

Based on their data, the report estimates that 46.3% of digital ad spend from retailers will be used on search engine advertising, compared to the industry average of 41.5%.

Similarly, this rate is expected to grow even more in 2020 to account for 47.3% of total retail digital ad spending:

“Retail overindexes on search because bottom-funnel search ads are essential for driving ecommerce, and Google Shopping ads have become a go-to ad product for retail advertisers. Conversion rates for retailers using Google Shopping ads range from 1.1% to 3.1%.”

Part of this growth may be attributed to new burgeoning opportunities outside of Google’s search ecosystem. For example, the report identifies Amazon search as a potential driving force for future retail advertising.

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