Amazon Ad Revenue Set to Soar in 2020

By Douglas A. McIntyre Published Jun 23, 7:10AM EDT

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Amazon Ad Revenue Set to Soar in 2020 — © leminuit / Getty Images

A widely circulated report shows that the ad revenue for Alphabet Inc.’s (NASDAQ: GOOGL | GOOGL Price Prediction) Google will drop for the first time since the data has been measured, even if it still will have more ad revenue than any other digital property in America. As ad revenue continues to decline due to the spread of COVID-19, there will be one winner. Amazon.com Inc. (NASDAQ: AMZN), which got into digital ad sales later than most large digital companies, should post a sharp increase in its dollars.
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Research firm eMarketer expects Google’s ad revenue to drop to $39.6 billion from $41.9 billion in 2019. Second place Facebook Inc. (NASDAQ: FB) is expected to post a very small increase of 5% to $31.4 billion. Amazon’s jump is expected to be by 23% to $12.8 billion. Unlike the other two, Amazon only ramped up its ad sales business sharply in 2017.

Amazon’s advantage over its two largest competitors is that it sells sponsorship of products when people search the category. A search for personal computers brings up an ad for Lenovo PCs. It promotes the brand before people see the products for sale below the ad.

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With hundreds of millions of products for sale at Amazon.com, the e-commerce company allows sellers to get an advantage if they are willing to pay.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.