After entering the Australian market in late 2017, Amazon quietly launched its advertising services earlier this year.
And now consultancy firm PwC is tipping Amazon Advertising to lead the sustained growth of internet advertising in Australia over the next few years.
“All online advertising categories are expected to grow in the next five years, with most segments bolstered by the arrival of Amazon Advertising,” said PwC in the Australian Entertainment & Media Outlook 2019-2023.
The success of Amazon’s ad service in the US saw it surpass Microsoft and Oath in 2018 to become the third largest digital ad seller, behind Facebook and Google, with four per cent of the market share.
And Australian advertisers will soon start flocking to the service, which PwC says “has been crafted for media agencies and advertisers, and the inventory spans the categories of display, video and search”.
Amazon Advertising offers sponsored products, sponsored brands, stores, display ads, video ads and its programmatic platform, Amazon DSP.
“Amazon are well positioned to offer addressable advertising solutions, built on a rich, and growing database of consumer behaviour and purchase insights.”
The ‘early adopters’ of Amazon Advertising will be those companies already using the company’s ecommerce platform.
According to the report, Australia’s overall internet advertising market will grow by 13.4 per cent between 2019 and 2023 to reach almost $16 billion.
Online video advertising, which Amazon also offers, has been the fastest growing internet advertising category of late, growing 26.2 per cent in 2018, and will continue in the future.
Between 2019 and 2023, video will grow 22.4 per cent.