With rising digitization in the market, e-commerce advertising will account for about 12.2% of the digital ad spending in the US – claims eMarketer.
The global pandemic has been a significant factor for the increased growth in e-commerce ad spending globally. The marketing channel has accounted for a majority of businesses’ sales. As a result, by the end of 2020, e-commerce advertising will count for nearly 12.2% of the digital ad spending in the US – claims eMarketer.
The company released its latest findings around the rising growth rate on e-commerce ad spending. Even the e-commerce channel is most likely to account for about 15.8% of the total digital spending by 2024. Brands will spend around $17.37 billion in advertising on e-commerce websites and applications this year.
The estimated revenue is up by 38% from last year. In fact, the rate of ad spending growth for e-commerce channels is projected to max out in 2020.
This development will slow down to 29.8% in 2021, and it is expected to touch at 13% by 2024. The study reinforces the e-commerce medium as a media channel!
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Lately, various online retailers have either opened or ramped up advertising sales on media platforms. This includes Walmart, Rite-Aid, Target, and CVS.
As per the statistics, Amazon is the largest platform current with 75.7% of the overall ad spending of the e-commerce channel – and it will continue holding onto its dominant market role.
Even the market share of Walmart will touch nearly 7% by 2022. It is the next closest retailer to Amazon and will see around $849.4 in retail advertising revenue in 2020. This is representing about 4.9% of all the US e-commerce platform ad spending.
The market share is expected to go up to 7% by 2022. Furthermore, the study indicated online retailers like Etsy and eBay would also continue holding large presences in the market.
As Andrew Lipsman, Principal Analyst of Insider Intelligence at eMarketer in the company blog post – “E-commerce channel ads are gaining popularity as brands realize the value of targeting prospects exhibiting purchase intent within the large e-commerce marketplaces.
While Amazon has already proven itself as an ad platform, the next wave of e-commerce power players is now making more aggressive moves in the space.”
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Undoubtedly, it is tricky to identify and track users while advertisers look into the future. However, this trend of retailers opening up with digital properties into advertising has increased in 2020 like never before. The pandemic has made marketers grasp the value of the consumer data better they own – resulting in huge gains.