Amazon benefits from Apple’s tracking transparency: advertisers move budgets
Amazon is benefiting the most from the ad budget shifts. (Photo: Sundry Photography / Shutterstock)
After Apple’s tracking transparency, the income generated from the ads collapsed at many companies – now they are looking for alternatives. Amazon is one of them.
Google, Amazon and Facebook are the three largest advertising platforms that advertisers use for different purposes: Google for comprehensive searches on the web, Facebook for social media and Amazon is considered by marketers as a search engine for products – even before Google.
Apple’s privacy labels, tracking transparency and the associated tracking opt-in made ads on Facebook up to 40 percent more inefficient, an operator of a media agency reported Hot. Only 25 percent of users allow tracking. Without tracking, there is no user data – and that in turn makes it much more difficult to display advertisements individually. The possibilities to observe, control and optimize the display are limited.
The result: advertisers are looking for alternatives. Bloomberg reports that many advertisers are now starting to move their budgets to Amazon. Many companies are already selling on Amazon or are starting to do so, the Amazon Marketplace is booming. At the same time the advertising division is the fastest growing and most profitable segment of the company. In the second quarter, Amazon’s “Other” category, which consists largely of advertising revenue, grew 87.5 percent, compared to 56 percent for Facebook’s ad sales, reported Bloomberg and refers to the market research company Emarketer. Accordingly, investors are also concerned that the previously stable advertising income could collapse if people no longer use their cell phones and laptops excessively due to the pandemic.
Not only Amazon benefits – influencers too: inside and traditional channels
Some companies now serve their advertising on social media and, above all, Instagram through a platform-independent advertising option: influencers: inside. To this end, traditional channels such as radio advertising are being looked at again, but above all direct advertising such as e-mail marketing.
