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According to a report, Amazon remains behind Google and Facebook in the advertising market

An advertising research firm, Borrell, surveyed 1,881 ad purchasers during the start of 2022. The research points out that most of the ad buyers prefer Google (36 percent) and Facebook (58 percent) to place their advertisements instead of the top leading e-commerce platform, Amazon (3 percent).

The information from the research indicates that Amazon can potentially escalate its local ad share in the marketplace. As per the report shared by eMarketer, Amazon accounts for 15 percent of digital advertising spend, counting local and national ad vendors, versus 24 percent for Facebook and 26 percent for Google. According to the statistics shared by Borrell Associates, the annual average ad spending by local businesses is 9,672 dollars for Amazon, 38,751 dollars for Google, and 13,362 dollars for Facebook.

The findings from Borrell's study also help elaborate on why Meta (Facebook) has been so contentious in its local businesses lobbying campaign against Apple’s new operating system. For those who don’t know, Apple Inc. announced the App Tracking Transparency (ATT for short) feature for iOS and Mac to allow users to decide whether they want to share their data with businesses for advertising experience or not. But, Facebook strongly opposed this stance as it would badly affect small businesses. In addition, Facebook has also launched a website for small business owners to spread their concerns about this. Facebook says new startups will lose revenue if they can’t utilize personalized advertisements.

Moreover, among the massive ad publishing platforms, Amazon's share is growing at a high pace, with overall ad sales at 18 percent in the second quarter of 2022 compared to Q2 of 2021. On the other hand, the leading digital ad platform, Google, saw ad sales surge by 12 percent, while Facebook's ad spend grew only 1.5 percent simultaneously.

While considering data from Borrell's survey, it is pretty much apparent that Amazon has a much lesser share of national and local ad spending, which is why despite frequent advertisements, Amazon remains unsuccessful among local ad buyers.



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