Google’s ad business is getting a run for its money from a competitor whose business is booming: Amazon. A new report this week from BMO Capital analyst Daniel Salmon projects that Amazon will grow its share of the digital ad spend, according to The New York Post.
“More and more, shoppers are taking to Amazon to search for deals on everything from Cinnamon Toast cereal to toasters — and ad dollars are following those consumers,” The Post reports.
Salmon’s report projects that Amazon’s ad business will generate $3.5 billion this year, and will grow to $5.7 billion next year — a 63% surge. “By comparison, the entire TV industry books around $70 billion per year,” The Post notes.
The report quotes Martin Sorrell, CEO of ad holding company WPP Group, saying: “The threat to Google, in my view, is Amazon. It’s Amazon and search on Amazon that is potentially the biggest threat. … Amazon’s tentacles are spreading rapidly into all areas.”
Salmon notes that 55% of U.S. consumers begin searching for products on Amazon — a number that was reportedly at 44% last year.