Google still holds the lion’s share of search ad revenue in the U.S., but Amazon’s search advertising is expected to chip away at that dominance over the next few years, according to a new eMarketer forecast. Amazon’s search advertising revenue share is climbing, according to a new eMarketer study. Amazon’s share is expected to grow to 15.9% by 2021, with Google’s expected to contract to 70.5%.
Revenue for the company’s “other” category, which includes Amazon’s increasingly important search advertising business, climbed 37% to $3 billion in the second quarter. The company’s digital ads unit has been increasingly considered as a contender to take on the “duopoly” of Facebook and Google; eMarketer said in February Amazon was projected to claim 8.8 percent of U.S. digital ad spending in 2019, up from 6.8 percent in 2018.
The new study focussing on search advertising says the U.S. search ad market is expected to grow nearly 18% this year to reach $55.17 billion. Google holds a 73.1% share of that, equaling $40.3 billion, eMarketer said. Meanwhile, Amazon is expected to grow nearly 30% over last year to reach $7.09 billion in 2019, reaching 12.9% of the market share. Amazon’s share is expected to grow to 15.9% by 2021, with Google’s expected to contract to 70.5% of the market.