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Juniper: Amazon set to disrupt growing digital ad business

Global digital advertising revenues will reach US$520 billion by 2023, with Amazon set to emerge as a key disrupter of the current duopoly enjoyed by Google and Facebook, according to a report by Juniper Research.

According to Juniper, the digital ad market will grow by an average rate of 15% annually over the next five years, with growing driven by the he use of AI-based programmatic advertising to deliver highly targeted ads.

Juniper’s definition of digital advertising includes online, mobile browsing, in-app, SMS, digital-out-of-home and OTT TV services.

The Juniper report, Future Digital Advertising: Artificial Intelligence & Advertising Fraud 2019-2023, also predicts that Amazon’s emerging digital ad business, boosted by its consumer retail data, will enable the e-commerce giant to capture an 8% share of global digital ad spend by 2013, up from 3% last year.

Juniper predicts that Amazon’s advertising revenues will reach US$40 billion by 2023, representing growth of 470% from its advertising revenues in 2018.

According to the research outfit, the company will tap its retail data and investment in machine learning to offer targeting via its advertising platforms and attract users from the established duopoly of Google and Facebook.

According to the study, Google’s own advertising revenues will exceed US$230 billion by 2023. However, Google’s global market share of digital advertising spend will fall 1% over the four-year period due to the growth of competing platforms, including Amazon and China’s Baidu.

Juniper also predicts that 75% of global online and mobile ads will to be delivered via AI-based programmatic advertising by 2023.