After dominating the online ad market in the US for several years, Google is now facing serious competition from Amazon and Facebook.
According to a latest report from eMarketer, Google’s share of search ad revenues will drop due to Amazon’s rapid growth. Advertisers are moving to Amazon to capture consumers who are searching for products to buy. eMarketer predicts that Google will have 70.5% of the search ad market by 2021. It is important to note that Amazon surpassed Microsoft Bing in 2018 to become the second-largest search ad platform in the US.
“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.”
On the mobile front, Google will only take 33% of all ad dollars in 2019 while Facebook will take 30.8%. It will be interesting to see how Google can maintain its growth momentum over the coming years.