Investor Strategy

Amazon’s ad revenue in 2020 is set to grow 23.5% despite the pandemic

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  • Insider Intelligence publishes thousands of research reports, charts, and forecasts on the Media, Advertising, and Marketing industry. You can learn more about becoming a client here.
  • The following is a preview of one Media, Advertising, and Marketing forecast. 

Amazon will continue to see ad spending growth in 2020, albeit at a depressed rate when compared with eMarketer’s earlier estimate. 

Total Ad Revenues

Amazon will increase its U.S. ad revenue to $13 billion this year, growing 23.5% when compared to 2019. However, it’s important to note that while Amazon will still see an increase in ad spending in 2020, the $13 billion estimate is about $920 million less than what eMarketer had predicted before the coronavirus outbreak. 

And Amazon isn’t the only tech company seeing a shift in ad revenues amid the pandemic. Google will bring in $39.58 billion in US digital ad revenues excluding traffic and content acquisition costs this year – representing a downward revision of more than $7 billion from eMarketer’s early-March forecast.

Similar to Amazon, Facebook may see an increase in net US ad spending in 2020, but at a much lower number than anticipated. 

Net US digital ad revenues at Facebook (including all owned and operated properties as well as Facebook Audience Network) will increase by 4.9% this year to $31.43 billion. That’s about $4.82 billion less than predicted in early March.

According to eMarketer analysts, Amazon may still be seeing an increase in ad revenue due to the fact that its platform doesn’t cater to the travel industry as much as Google does. And with e-commerce on the rise as the coronavirus lingers, Amazon’s estimated $13 billion increase in ad revenue will likely hold true.

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