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Can Amazon Grow Its Share of the Advertising Market?

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Growing its market share from 4.2% to 7.0%

Amazon (AMZN) is set to close the year with ~4.2% of the US digital advertising market, according to eMarketer. However, Amazon’s share of the market is expected to expand ~70% in the next two years, bringing its share to 7.0% by the close of 2020.

Google (GOOGL) and Facebook (FB) are expected to end the year holding 37.1% and 20.6% of the US digital advertising market, respectively. However, Google is forecast to lose ground in future years, with its share shrinking to 35.1% by 2020. Verizon’s (VZ) Oath subsidiary and Microsoft (MSFT) are estimated to hold ~3.3% and ~4.1% of the market, respectively.

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Ad-supported video service in the works

Amazon is reportedly focusing on the television commercial market in its pursuit of advertising dollars, according to The Information. The company is planning to launch an ad-support video streaming service aimed at the ~48 million households that use its Fire TV device.

$191 billion in television ad spending

Although the television commercial market is shrinking, it is still huge. Globally, brands are expected to spend more than $191 billion on television commercials in 2020, according to Zenith data cited by Recode. By 2020, eMarketer estimates television advertising will be a ~$70 billion market.

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