Amazon makes headway in breaking up Facebook and Google's digital ad duopoly

Amazon Forecast to Be No. 3 Digital Advertising Player in 2018

That's according to new estimates from eMarketer.

Although Google and Facebook are set to remain as the largest players in the digital ad market, with an expected 37.14pc and 20.57pc share respectively, their combined market share is likely to be down.

Meanwhile, Facebook and Google together will have about 58% market share this year. The research firm, in a report released September 19, forecast Amazon U.S.ad revenue to more than double this year, to $4.61 billion. This year, Google and Facebook will control 58% of USA digital ad market, bringing in a combined $64 billion, according to eMarketer.

And the Google-Facebook duopoly will maintain its hold for the next few years.

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The market tracker predicted that Amazon will take in $4.61 billion in online advertising revenue as its share of the U.S. market grows to 4.15 percent, for the first time surpassing Microsoft and Oath, a subsidiary of Verizon Communications.

Amazon is expected to move up the rankings of the top US digital ad sellers in 2018 to take the No. 3 slot, thanks to an acceleration in ad revenue growth and accounting changes by the company, according to the latest forecast from research firm eMarketer.

Amazon doesn't break out sales from advertising, which it reports alongside other lines of business in an "other" category on its financial reports. "We're seeing a broader appeal to advertisers than we might have expected", she said. "We have hundreds of thousands of emerging and established advertisers".

Amazon's priorities with respect to advertising include improving the usability of its tools for advertisers, helping "make smarter recommendations" for customers, enhancing measurement capabilities, and automating processes, Olsavsky added. But that business began to take off recently alongside a perception among some ad buyers that Amazon, with its trove of data on what people buy, can help them more precisely determine whether people actually parted with their cash after seeing an advertisement. It's introducing more video advertising formats and provides advertising options both on and off its owned and operated properties.

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