Besides retail and cloud, there is another industry in which Amazon is becoming a growing threat, and that is advertising. Reports are coming in that advertisers are moving more than half of their budgets from Google's ad network to Amazon.
That equals to millions of dollars. To make things even more important for Google – the biggest chunk of the search engine giant's revenue comes from ads – 86 per cent. Last year, Google earned $95.4 billion in ad revenue.
CNBC's report states that businesses that are switching from Google to Amazon come mostly from the consumer packaged goods industry, while categories like automotive, or travel, still remain on Google.
There are also industries that shift between different Google products. Namely, YouTube, which is getting more traction by the minute.
The entire report is based on comments from people that cannot speak publicly, but it seems as Google is a bit worried about the trend. It's not Defcon 5, but it's definitely cause for concern.
“Leadership is definitely concerned, but [it’s] not a huge threat right now,” a manager in Google’s ad sales organization said.
This report is further cemented by eMarketer's recent report which claimed Amazon became the third largest US digital advertising platform, breathing down Facebook's and Google's necks.
You can find the full report on this link.
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