Report Overview


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Amazon Advertising: From Duopoly to Triopoly in advertising?


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Over the past two decades, global ecommerce giant, Amazon has focused on owning entire market verticals with books being the first market that it dominated. However, to think of Amazon as just an online retailer, would be underestimating the depth and breadth of its presence across multiple markets. Amazon’s ultimate aim is to curate the customer’s entire e-commerce journey. Amazon not only sells products; it also produces television shows and movies; publishes books; operates the world’s largest streaming video-game platform; manufactures a growing array of products. More recently the bright spot was Amazon’s advertising business, which appears to be picking up speed again.

Contents

Key takeaways

Introduction

Current size of Amazon’s advertising business

Amazon’s growing advertising network

Amazon’s advertising strategy

  • Increasing geographic reach
  • Acquisition

Valuable advertising segments & its direct competition

  • Product display ads
  • Headline SEARCH ads
  • Sponsored product ads
  • New advertising solutions

Local Implications

Will Amazon come under the scanner of ACCC?

List of charts/tables

Figure 1. Amazon revenue breakdown (2018)

Figure 2. Duopoly vs Amazon Share of Total US Digital Ad Spending, 2019 & 2020

Figure 3. Merging the worlds of Facebook, Google and Amazon Advertising

Figure 4. Amazon Advertising* Revenue Growth