Daily Management Review

Consumer brands leaving Google for Amazon


Amazon's advertising business is booming. Some advertisers convert more than half of the budget, which they usually spend on advertising on Google, into advertising on Amazon. We are talking about hundreds of millions of dollars, according to CNBC with reference to the managers of several media agencies.

Mike Mozart
Mike Mozart
Amazon’s success may be a rare threat to Google’s parent company, Alphabet, which last year received $ 95.4 billion in advertising revenue — 86% of its total revenue.

Google is the dominant digital advertising platform in the United States. In 2018, it is expected that its share will account for 37% of online advertising budgets.

Until now, virtually nothing threatened Alphabet’s advertising revenues. The growth of its total advertising revenue accelerated in the first half of 2018 compared with last year.

Not all categories of brands transfer money to Amazon. The tendency is observed mainly in the category of consumer goods. At the same time, car and travel companies are not switching to advertising on Amazon, because their products and services are not represented on this platform - at least for now. In addition, advertisers move some of their advertising costs from other sites to Google resources, in particular YouTube.

Managers of six media agencies have confirmed that Amazon is making huge strides in advertising.

This is consistent with a recent report by eMarketer, according to which the e-commerce giant has become the third largest US online advertising platform after Google and Facebook.

One of the managers of a large agency told CNBC that some brands prefer to advertise on Amazon, as this directly correlates with sales. According to Survata, in about 49% of cases, product search begins on Amazon.

A source at another major large agency reported that some of the brands they work with transfer 50% of their advertising budgets, that is, hundreds of millions of dollars a year, from Google to Amazon in some regions of the world.

At the end of September, Google announced an update on advertising regulations for financial products and services. The corporation lifts a ban on advertising cryptocurrency projects and plans to allow ads to be placed on regulated cryptocurrency exchanges in the United States and Japan.

source: cnbc.com

Science & Technology

Smartphone makers will pay for pre-installing Google apps‍

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

New Study Finds Goats Interact More With Happy People

More than 32 thousand "smart" houses under threat of hacker attack

Internet addiction and children: Global plague

World Politics

World & Politics

Cyprus Cobalt Air stopped flights

Transparency International: Europe should stop selling citizenships

Turkey: We are not going to discuss borrowing from IMF anymore

Trump in your mobile phone: US is going to test Presidential Alert system

European automakers warn of consequences of tight emission controls

IATA: EU-UK flights can be cancelled due to Brexit disagreements

Ex-Brexit Minister Said A ‘Reset’ Is Needed For Brexit Talks

10 countries with the best healthcare systems