According to the CNBC report, Amazon is getting a leg up over Google when it comes to advertising that some advertisers are moving more than half of their budget reserved for Google to the Amazon. Allude to executives at multiple media agencies; CNBC reported that Google could face a danger from Amazon in the online advertising space where it generated $95.4 billion in revenue, instead of represents 86 percent of all of Google’s revenue.
For this year, it is expected it will control 37% of digital advertising budgets. And whereas it has been capable to hold off Amazon, advertisers are starting to shift dollars toward the online retailer. CNBC noted that the brands shifting money toward Amazon are attentive on consumer packaged products.
Automobiles and travel haven’t yet contained ads on Amazon like product makers. The report noted that advertisers are moving their ad dollars to other Google properties and away from search with a big attention on YouTube.
One supervisor in Google’s ad sales organization told CNBC that he is seeing clients come up with different brands to sell on Amazon only rather than shifting search budgets toward the online retailer. “Leadership is absolutely concerned but [it’s] not an enormous threat right now,” this person said.
Still, executives at six media agencies told CNBC that Amazon is making a big splash in advertising, with one executive at a large agency saying that some brands call Google search ads “quaint” and have been requesting their ads be moved to Amazon because it relates to sales. Citing Survata, CNBC noted that around 49% of product searches start on Amazon.
One more executive at a big agency told CNBC that some of the trades that sell products are moving about 50% to 60% of the money going to ads on Google to Amazon, which amounts to hundreds of millions of dollars annually. Yet another executive at a different firm said some brands are moving 50% of their Google search ad spend to Amazon, also amounting to hundreds of millions of dollars a year. The executives noted that the brands requesting the changes are all consumer products companies.