Amazon will win advertising dollars away from Facebook amid privacy concerns, a new survey suggests

Amazon | January 10, 2019

Amazon could double its ad revenue among top US ad buyers in the next two years, giving it 12 percent of total digital ad spending in 2020. Meanwhile, Facebook’s main social network platform is expected to lose 3 percentage points of market share in that time. That’s according to a new Cowen survey of 50 senior US advertising buyers in late December that showed Amazon is expected to gain more digital ad market share by 2020 than any other platform. These ad buyers controlled a total of $14 billion in digital ad budgets in 2018. The investment bank weighted the data so that bigger spenders factored in accordingly. Ad buyers are mostly pulling their growing Amazon spend from other digital platforms, the survey found. Google and YouTube are also expected to lose a modest amount of ad revenue share through 2020. Facebook-owned Instagram is expected to see a 2 percentage point increase in that time, helping to balance out its parent company’s loss.

Spotlight

Digital advertising is essential to the success of the European Digital Single Market. It has a key role in helping fund digital content, online services and we applications, making them widely available at little or no cost, as well as driving growth in the digital sector. It is also fundamental to the European digital economy that promotes business and economic growth, and paves the way for broader digital innovation.

Spotlight

Digital advertising is essential to the success of the European Digital Single Market. It has a key role in helping fund digital content, online services and we applications, making them widely available at little or no cost, as well as driving growth in the digital sector. It is also fundamental to the European digital economy that promotes business and economic growth, and paves the way for broader digital innovation.

Related News

ADVERTISER CAMPAIGN MANAGEMENT

WPP, on the rise in Q1, makes transformative moves

WPP | April 27, 2022

The world's largest advertising firm WPP unveiled its strong growth of 6.7% for Q1 2022. WPP has Ogilvy, Grey and GroupM in its portfolio and has reported organic growth of 9.5% across the board with a revenue increase of just above EUR 3bn on Wednesday. According to the corporation, the year has begun strongly, continuing the significant momentum established through 2021. In the first quarter, revenue increased by 6.7 % to £3.1 billion (A$5.4 billion). Revenue rose 6.4 percent year on year in constant currency. Like-for-like growth was 8.1%, excluding cash, acquisitions, and disposals. Revenue less pass-through costs increased 10.3 % year on year to £2.6 billion (A$4.5 billion) in the first quarter and 10% in constant currency. Like-for-like growth was 9.5% after adjusting for the favorable net impact of acquisitions and disposals. The top five markets for Q1-like-for-like revenue less pass-through costs were the United States (8.9 %), the United Kingdom (8.1 %), Germany (16.1%), China (11.9 %), and India (25.1 %). WPP predicted that full-year net sales growth in 2022 would range between 5.5 and 6.5 %. This is an increase from the group's earlier expectation of roughly 5%. "The year has started very well with continued momentum from 2021 resulting in strong growth across all businesses and regions. Demand is strong for our services, particularly in digital media, ecommerce, data and marketing technology," said CEO Mark Read. "The year has started very well with continued momentum from 2021 resulting in strong growth across all businesses and regions. Demand is strong for our services, particularly in digital media, ecommerce, data and marketing technology," said CEO Mark Read. WPP has been making rapid moves across its owned companies which involves mergers and a launch of Everymile in the D2C sector. GroupM, WPP's media investment wing on Tuesday, announced its strategies for transformation with enhanced agency offerings and unified performance organization. The steps involve two major mergers of Essence with Mediacom and Mindshare with Neo. Essence and MediaCom will unite to become EssenceMediacom, a new agency that will combine Essence's digital and data-driven DNA with MediaCom's scalable multichannel audience planning and strategic media experience. GroupM Nexus, the world's top media performance organisation, will bring together industry-leading expertise and solutions from Finecast, Xaxis, and GroupM Services — GroupM's global network of activation professionals. Mindshare will complete its integration with global performance agency Neo, allowing customers to access a greater range of transformative media offerings. When it comes to Everymile, the company's recently launched venture, WPP says,"Everymile builds on WPP's existing global omnichannel commerce capabilities in strategy, customer experience and technology development, adding demand generation, online trading and merchandising, supply chain and logistics. It will enable companies and brands to deliver brand-led DTC commerce – from the customer's screen to their doorstep – simply and cost-effectively." With the launch of Everymile, WPP becomes the first firm in its industry to provide an end-to-end e-commerce solution. While talking about the way ahead, Reed said,"We continue to see strong demand for our services from our clients and to invest in the many opportunities for growth driven by the digital transition, including Choreograph and the recent launch of Everymile. As a result of a strong first quarter, we now expect our growth to be in the range of 5.5% to 6.5%, up from around 5% at the start of the year. We remain very mindful of the impact of the broader macroeconomic environment on our business and will respond quickly to any changes as the year progresses."

Read More

ADVERTISER CAMPAIGN MANAGEMENT

ChannelAdvisor Adds Solutions to Use with Amazon Local Selling, Helping Sellers Grow Their Businesses

ChannelAdvisor | October 22, 2021

ChannelAdvisor Corporation, a leading provider of cloud-based e-commerce solutions, today announced ChannelAdvisor's multichannel commerce platform now includes solutions for sellers who want to offer in-store pickup within the Amazon Local Selling program. Recently announced at the Amazon Accelerate conference on October 21, Local Selling is currently available to select sellers who can deliver products to customers' homes within local delivery areas and/or offer Buy Online, Pickup in Store (BOPIS) at their retail stores and/or warehouses. ChannelAdvisor's solution is designed to help sellers participating in Amazon Local Selling to manage the in-store pickup experience, including their store setup, store-level inventory, and order status updates ("ready-for-pickup" and "picked up"). In-store pickup adds to ChannelAdvisor's existing solutions for sellers who leverage a range of Amazon services. Online shoppers have grown accustomed to the convenience and speed of in-store pickup. Our solution helps sellers in Amazon Local Selling provide the in-store pick-up options their customers are actively seeking. We're thrilled to invite sellers to leverage ChannelAdvisor's expanded support to help grow their businesses." Steve Frechette, vice president of product management at ChannelAdvisor Amazon is among more than 200 selling channels integrated with ChannelAdvisor's robust platform, enabling brands and retailers to reach consumers worldwide. ChannelAdvisor's platform includes powerful automation capabilities that offer brands and retailers a competitive edge, helping streamline operations, improve inventory and order management, and boost product visibility across marketplaces, search engines, retail and social sites. About ChannelAdvisor ChannelAdvisor is a leading multichannel commerce platform whose mission is to connect and optimize the world's commerce. For over two decades, ChannelAdvisor has helped brands and retailers worldwide improve their online performance by expanding sales channels, connecting with consumers across the entire buying cycle, optimizing their operations for peak performance, and providing actionable analytics to improve competitiveness. Thousands of customers depend on ChannelAdvisor to securely power their e-commerce operations on channels such as Amazon, eBay, Google, Facebook, Walmart, and hundreds more.

Read More

AD TECH AND MARTECH

How Popular Is Ad Tech? It's raining billion-dollar transactions, according to LUMA

LUMA Partners | April 08, 2021

Seven ad tech companies made transactions valued at over $1 billion in the first quarter of 2021 – double the amount that’s happened in the past few years combined. “We’ve got a perfect storm here of different forces lining up, which created such a strong quarter,” said Conor McKenna, LUMA Partners director. The ad tech investment banking firm LUMA tallied up recent deals in its Q1 2021 Market Report last week. Multiple paths to get to $1 billion exist IPOs, SPACs, and acquisitions – often by public companies flush with cash from spiking valuations. In Q1, those billion-dollar transactions included Magnite buying SpotX, Viant going public, Taboola and ironSource going the SPAC route, Vista taking a majority stake in TripleLift and AppLovin and DoubleVerify filing for an IPO. Macroeconomic, media, and marketing industry and market trends are currently all in sync, McKenna said. First, government stimulus funds accelerated recovery while cheap interest rates created economic buoyancy. Regarding the marketing industry, McKenna said “the overall media and marketing ecosystem has been on a growth tear for years, and the pandemic has led to an inflection point across streaming, gaming, and e-commerce.” Finally, investors are seeking new opportunities that are leading to a bumper crop of IPOs and SPACs. And the ad tech companies that go public might acquire more ad tech companies, McKenna said. “The market is rewarding action,” McKenna said. When Magnite bought SpotX and when Digital Turbine spent $1 billion acquiring Fyber, AdColony, and Appreciate, their respective stocks jumped by more than the value of the actual deal, he said. Right now, with markets so focused on growth, it’s better “to make errors of commission rather than omission,” he said. The rush to CTV “CTV has become a crucial narrative for any company that’s touching media, marketing or technology,” McKenna said.' The TV space is hot: Vizio went public, Magnite bought SpotX, LG acquired Alphonso for $125 million, Comcast’s Freewheel closed its purchase of Beeswax and Roku acquired Nielsen’s video ad tech assets. The Nielsen-Roku deal held particular interest to McKenna because it indicates how an OTT player could expand into data-driven linear ads. “In the traditional TV ecosystem, the supply side is the scarce side of the market,” he said. “Roku, one of the largest AVOD CTV players, is looking for more supply beyond what they’re touching, and moving into data-driven TV advertising.” This migration will be slow – over the next decade – but the trend toward convergent TV is in motion. Identity crisis? Not in ad tech When Google Chrome said it would remove third-party cookies last year, it injected plenty of uncertainty into the market. The ensuing pandemic didn’t help matters, halting deal-making for more than 90 days, McKenna said. But while few know exactly what marketing will look like come 2022, that uncertainty isn’t having a huge effect. Though Q1 2021 may go unmatched in terms of deal-making, there are still plenty of conversations happening at LUMA that indicate more companies will pair up or go public in 2021. The new, billion-dollar big fish can snap up smaller ad tech companies. For instance, Magnite was able to purchase SpotX after its stock hit record highs. “There are now very large, viable buyers that are deep in the ecosystem,” he said, along with an influx of consumers consuming media and shopping online – a perfect storm that’s continuing unabated.

Read More