Google has fended off all-comers, but it may have found a worthy opponent in ad tech: Amazon.
In 2018, Amazon will continue to press its advantage with a key tool in how publishers provision their ad space. Amazon has a jump on Google with the presumed successor to header bidding, known as server-side bidding, according to ServerBid. Meanwhile, Google has yet to release its own server-side product to the open market. That promises to help pry open Google’s dominant position in the display ad market in 2018.
“Nobody wants Google to have more power in advertising,” says Purch CTO John Potter.
Amazon’s demand-side platform is also cutting into Google’s business. Google’s DSP DoubleClick Bid Manager has been the most popular buying platform since the advent of programmatic. But by pitching agencies a self-service option, low fees and, most important, unique commerce and purchase data that advertisers crave, Amazon is catching up.
In 2016, Amazon’s DSP wasn’t popular enough for research firm Advertiser Perceptions to include Amazon in its DSP survey. But in its fall 2017 survey of 700 ad buyers, Amazon’s DSP tied Google for having the highest adoption rate among ad agencies.
Amazon is testing a new application programming interface for self-serve ads that will make its reporting and data segmentation more robust. This will help the company further scale its ad business to compete with Google. Most ad tech firms, which may offer superior plumbing but inferior data, simply can’t compete at this scale.
The unfortunately named Verizon brand Oath has the potential to create robust data sets to rival Google. But the blending of disparate Yahoo and AOL ad tech assets isn’t going smoothly, according to an ad buyer requesting anonymity.
“Verizon’s pitch to advertisers is way ahead of their engineering,” the buyer says. “But Amazon does have the engineering to back up its pitch.”
Other ad tech companies have the potential to challenge a specific aspect of Google’s programmatic business. The Trade Desk is growing rapidly, and it might one day overtake both Google and Amazon to become the industry’s leading DSP. But companies like The Trade Desk can only challenge Google in a given area, whereas Amazon has the potential to rival Google across its multitude of ad products.
Amazon’s ad business is growing 58 percent year over year, and the company reported ad revenues of $1.1 billion in its third-quarter earnings. For comparison, Google’s parent company Alphabet reported third-quarter ad sales of $24 billion. Amazon will further emerge as a threat to Google’s ad tech business in 2018, but it will take some time before the two are seen as equals.
“They’re not competing on Google’s scale yet,” the ad buyer says. “But everyone who owns Google stock should be looking at this. Their growth models don’t account for Amazon cutting in.”
‘Halloween is when Christmas ends’: A look at publishers’ pre-Black Friday commerce content playbooks
Publishers' Black Friday coverage plans are starting earlier and earlier but commerce teams are evolving to meet the demand.
How social media managers are coping with the Twitter debacle
Twitter – once a stable and trusty workhorse for social media strategists – now resembles the most wildly unpredictable social platform in the marketing arsenal.
‘A big reset in 2023’: After Big Tech’s mass layoffs, job candidates face intense competition
Recruiters report that 'we've never seen a market quite like this' as tens of thousands of employees flood the market.
SponsoredWhy cookie deprecation is deflating performance and inflating costs for advertisers
With the full deprecation of third-party cookies on the horizon, advertisers and publishers are navigating a challenging and quickly evolving landscape. The sunset of the third-party cookie continues as usage and lifetimes fall. Their deprecation is preventing brands from effectively measuring the effectiveness of media campaigns in real-time at highly granular levels. As the industry […]
Martin Sorrell-backed S4S Ventures, Bertelsmann invest $10M in data asset management outfit as it blends new content, analytics-based marketing for clients
The recent explosion in content has created the need not only for more sophisticated tools to manage it, but better ways to attach data and analytics to the content in order to better optimize it at the right time for the right opportunity.
Member ExclusiveMedia Buying Briefing: Which media will buyers turn to in a soft local market in 2023?
Traditional media including broadcast and print are expected to be hit hard by revenue losses. What will save local from a deeper downward trend next year will be local ad spending on digital, digital out-of-home (OOH) media and connected TV.