Amazon to take fight to duopoly as digital ad spend set to reach $520 billion
Online advertising spend will double by 2023, with marketers shelling out $520 billion annually.
This is according to new research from Juniper Research, which suggests spend will increase by an average of 15 per cent annually between in the five years from 2018.
The figure covers spend on online display, mobile, in-app, SMS, DOOH, and OTT spots.
Amazon is set substantially increase its market share during the period. By 2023 the company will use its huge retail data stores and its investments in machine learning to drive annual ad revenues of $40 billion, a growth of 470 per cent, Juniper says.
The duopoly will remain dominant, with Google's revenues alone set to top $230 billion. But its market share is forecast to fall by around 1 per cent annually as advertisers spend more not only with Amazon but also on other global platforms such as Baidu.
Meanwhile machine learning is set to increase efficiencies for both advertisers and DSPs. The research suggests that a new focus on contextual data in ML will deliver targeting improvements.
As a result, some 75 per cent of online and mobile ads are forecast to be delivered by AI-based programmatic systems.
Sam Barker, the author of the research, said: “Giving alogrithms access to the vast amounts of data generated by advertising traffic, including purchasing habits, user buckets and geographical location, is critical to enabling advertisers to secure a return on their ad spend.”