Digital ad newcomer Amazon cemented its spot as a major player in paid digital media in 2019.
In just a few years, Amazon has captured 17.4% of digital advertising market share, according to the Gartner CMO Spend Survey 2019-2020. Though Amazon is still in fifth place behind social channels, display ads, video ads, and affiliate/co-ops ads, the retail giant occupies an ad category of its own. No other platform offers the combined power of ad placement with in-depth data on customer purchase activity.
CMOs are taking note. As 78% of marketing leaders plan to increase digital ad spend in 2020, Amazon is priming the market to grab its share, not just with digital ad placement, but with offerings that integrate across marketing and advertising. For example, Gartner L2 has highlighted the Amazon Vine campaign model for new product launches as a best-in-class brand strategy. Third-party Amazon distributors have also gained status as key partners for brands hoping to improve their standing on crowded digital shelves. These programs and others are raising Amazon’s profile as a part of B2C and B2B multi-channel advertising strategies.