The Big Three
Amazon’s growth into a digital advertising giant will threaten Google and Facebook, transforming their current “duopoly” status into a “triopoly,” Forrester Research said in a new report shared with Marketing Dive.
Ad agencies and ad-tech firms also will need to adapt as the e-commerce giant follows its long-term strategy of eliminating middlemen that hinder efficiency.
Media and ad agencies will benefit from Amazon’s emergence as a third major digital ad platform, although they must develop expertise in running campaigns on its properties.
Agency holding companies are acquiring firms with Amazon-specific expertise to build out these capabilities. The e-commerce giant is adding more self-serve ad features, but agencies still have a role in helping marketers manage their campaigns among a growing variety of retailer media networks, including those being developed by Walmart and Target, per Forrester.
Ad-tech vendors need to partner with Amazon or prepare to compete with the company as it develops in-house services for advertisers. No single ad-tech vendor can plan, create, buy, measure and optimize ads among channels and mediums, giving Amazon an opportunity to fulfill a much broader role in ad-tech, the report says.