Amazon provided the spark for a surge in retail and commerce-based advertising. That surge has now reached fever pitch as other online retailers, including Walmart, CVS and Target, launch ad platforms in pursuit of incremental advertising revenue.
It’s working. Already advertisers are spending $5 billion annually on non-Amazon retail media platforms, according to Forrester Research. Meanwhile, Amazon’s ad business is four to five times that number.
As the ecommerce leader became a critical pillar for more and more brands, it created a need to manage marketing programs across all ecommerce media environments.
“Everything changed with COVID – ecommerce grew incredibly rapidly,” Larry Harris, CEO of Alpha Precision Media, said at AdExchanger’s Innovation Labs: Commerce Day event on Tuesday. “Amazon accounted for almost 40% of all ecommerce in the country.”
Harris was joined by Frank Kochenash, president of marketplace services at Wunderman Thompson Commerce, speaking on a panel called “The Service Layer For Commerce Marketing.”
According to eMarketer, Amazon’s advertising business grew by 52.5% during the onset of the COVID-19 pandemic last year, pushing its share of the United States digital ad market past 10% for the first time and fortifying its position as the No. 3 ad publisher, behind Google and Facebook.
“Amazon has been the catalyst for change,” Kochenash said. “It’s coming to a…