Amazon will soon encroach into the advertising territory long dominated by Google and Facebook, a prominent Wall Street executive said Thursday.
“I think that they are a force to be reckoned with, they are excellent with everything they do,” Kristin Lemkau, chief marketing officer at JPMorgan Chase, said at a large marketing-oriented conference, according to Business Insider. “You have to do business with Amazon.”
Amazon, once a relatively simple e-commerce service, has grown into a conglomerate with a stake in several industries, including cloud computing technology, film and show production, and electronics, like smart speakers and tablets. As it expands, so does its customer base, allowing the company to collect plenty of data on its shoppers and tempt advertisers with the information.
“They take customer obsession seriously,” Lemkau said. “And I think they feel like the first big, emerging advertiser that can be grouped with Facebook and Google.”
Facebook and Google, in total, account for roughly 90 percent of the growth in new advertising revenue. The companies dwarf all other corporations in the industry. (RELATED: Facebook And Google Dominate More Than Just Ad Revenue)
The two tech giants are expected to grab roughly 63.1 percent of the U.S. digital ad spending in 2017 combined, an uptick from a prior estimate of 60.4 percent, according to market research company eMarketer.
Media organizations, including giants like The New York Times and The Wall Street Journal, are coalescing under the group known as the News Media Alliance (NMA) to earn more from the online advertisement revenue realm. The coalition is petitioning federal lawmakers to provide its members with an exemption from certain antitrust regulations, according to multiple reports. Such a reclassification would allow them to collectively negotiate with the two tech powerhouses, which is critical for trying to stop Facebook and Google from hogging all of the revenue. (RELATED: This Startup Wants To Take Some Power Away From Tech Giants)
Amazon presumably hopes to join the proverbial revenue party and turn the effective duopoly into a triopoly — something that is not far-fetched at all, according to Lemkau.
“They have a search engine, a programmatic stack, premium content and one of the top five apps,” Lemkau told Business Insider. “And they are the biggest consumer company in the world today.”
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