Marketing Outlook: Amazon Becomes Third-Largest Advertising Business

Approximately 73% of the U.S. workforce — roughly 100 million people — are known as “knowledge workers,” who primarily in open office environments. Knowledge workers today are able to pursue numerous careers that involve technology and information gathering. For years, however, one of the only fields a knowledge worker had available to them has been advertising.

Advertising is an all-encompassing marketing communication that utilizes non-personal messages to promote and sell products, services, and ideas.

Global advertising spending grew by 4.3 percent throughout 2018. The U.S. is the largest advertising market in the world. In 2016 alone, more than $190 billion were spent on adverting in the United States. That figure is more than double the amount spent on advertising in China, which is the second largest ad market across the globe.

There have numerous forms of advertising that have both gained and lost momentum across the global sector. Newspaper ads, for instance, used to reign supreme — but now the value of on-site signage alone is equal to 24 full-page newspaper ads every year. Digital advertising is much more commonplace nowadays and Amazon is certainly at the top of the marketing chain.

The fastest growing mediums are projected to be mobile internet, growing by $74.3 billion between 2017 and 2020.

According to AdAge, Amazon made a significant impact on the advertising industry throughout 2018, bringing billions of dollars and becoming the third-largest ad business in the country. Approximately 40% of small businesses are profitable and for Amazon, a company that is far from small, “profitable” might be an understatement.

Forecasters originally expected Amazon to make less than $3 billion in 2018, but Amazon soared. Amazon brought in $10 billion in advertising revenue throughout 2018.

Other players in the advertising sector have been working alongside Amazon in order to compete with two other ad kinds: Facebook and Google. Facebook reported more than $16 billion in ad sales in the fourth quarter alone of 2018 and Google topped $135 billion in 2018 ad revenue.

“There is a reason those two bigger ad companies are now paying close attention,” said Will Margaritis, SVP of E-commerce at Dentsu-Aegis Network.

Amazon has become an essential factor within the advertising sector because of its dominance in e-commerce.

“If you’re selling on Amazon, you’re advertising on Amazon,” added Wes MacLaggan, SVP of marketing at Marin Software. “And you’re increasing your budgets.”

Amazon has already had an amazing career and as the world becomes even more technology-dependent, they will continue to shine. Amazon’s advertising homeware reads:

Ad solutions to help you find, attract, and engage millions of Amazon customers at every stage of their journey.”

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