Digital Gabe
Cutting Edge Commentary On All Things Media

We Officially Have A Triopoly On Our Hands

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To say Amazon’s ad sales business is on fire would be an understatement – it’s more like a raging inferno.  Yesterday eMarketer raised its forecast for Amazon’s 2018 ad sales from $2.9B to $4.6B.  If the new prediction holds Amazon will become the third largest digital publisher with 4% of the $111B market.  Granted, Google and Facebook are still way in front with a combined 58% share, but that’s even down from 59% in 2017.  So it looks like Amazon is starting to muscle in on the duopoly’s turf.

For brands and agencies the idea of a third horse entering the race is welcome news.  For years clients have complained that Google and Facebook wield too much market power, and have hoped for other competitors to step forward.  For a while it looked like Snapchat had a chance to be the third member of a new triopoly, but their flattening user growth and ever-changing business strategy has taken the air out of that tire.  That’s why it’s so interesting to see Amazon, who wasn’t even selling ads five years ago, already making significant inroads into the market.  This one’s worth keeping an eye on.

 

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