Amazon.com Inc is eating into Google’s giant slice of online search advertising in the US as businesses target the online retail platform’s shoppers, eMarketer said in a forecast on Tuesday.
Google would continue to dominate the market for serving up ads along with search results, but Amazon and “smaller players,” including Walmart Inc, Target Corp, eBay Inc and Pinterest Inc, are seeing their shares grow, the market tracker said.
Ads displayed along with query results at shopping sites are seen as having good odds of catching the eyes of consumers while they are intent on buying something.
“Amazon’s ad business has attracted massive increases in spending, because advertisers can reach consumers during product queries, a time when they’re ready to buy,” eMarketer principal analyst Nicole Perrin said. “Amazon has also rolled out better measurement and targeting tools, making it even more attractive for advertisers.”
The US search ad market overall would have grown nearly 18 percent this year to reach US$55.17 billion, with Alphabet Inc’s Google taking in US$40.33 billion, or slightly more than 73 percent, eMarketer said.
While Google would remain dominant in the market, its share would drop to 70.5 percent by 2021, it said.
Meanwhile, the Seattle-based e-commerce colossus is to see its share of the search ad market grow from 12.9 percent this year to 15.9 percent by 2021.
“Polling suggests that most product searches now begin on Amazon, causing the No. 2 search player to grow rapidly and steal share from its larger rival,” eMarketer said.
Amazon’s search ad revenue was predicted to grow nearly 30 percent this year to US$7.09 billion.
Last year, the company took the No. 2 spot in the US search ad market from Microsoft Corp, which was forecast to have a 6.5 percent share this year, eMarketer said.
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