Adland – It’s not just retailers, you need to wake up to Amazon too
While retailers are quaking at the coming invasion of Amazon, it will also be the new 800-pound advertising gorilla no one will be able to ignore, argues Mediacom’s Roger Dunn.
Amazon has been making the headlines for months now, with the scale of destruction they will wreak on Australian retail already reaching mythic proportions.
However, while its e-commerce prowess is well known, little has been mentioned about their advertising business and the potential disruption it will cause – not least to the agency business.
Although Amazon doesn’t officially break out the ad revenue, eMarketer predicts they should pull in just over $1 billion in online ad revenue in 2017, an increase of 9.4% year on year, in comparison to approximately $34 billion for Google and $15 billion for Facebook.
Amazon therefore has some way to go, but clearly has the potential to become a third powerful player to join the existing tech duopoly. In contrast to the potential for fake news on Facebook, or unsavoury videos on YouTube, Amazon is also brand safe: there’s little to no risk of being positioned next to questionable user generated content.
Interesting article Roger, a side of Amazon to watch for sure.
Thanks Roger
Really interesting take on Amazon outside of the pure play retail experience.
“The only skill that will be important in the 21st century is the skill of learning new skills. Everything else will become obsolete.”
I will be stealing some of your content to make myself look smarter (not a hard thing) and may or may not credit you.
I wonder if the brand safety issue is played upon by Amazon if they can drive a more rapid increase in their share of digital ad dollars.
Keep up the great content
NK