Home eCommerce News US ecommerce channel may experience about 40% jump in ad expenditure

US ecommerce channel may experience about 40% jump in ad expenditure

ecommerce channel

It has been estimated that by the end of this year, US digital ad expenses may experience a leap of 40%. Marketers agree to spend about $17.37 billion on advertising on ecommerce sites and apps. Compared to 2019, ad spending on ecommerce properties rises by 38.8% this year. It has also been expected the ecommerce channel advertising will represent 12.2% of US digital advertisement spending.

Andrew Lipsman, senior analyst eMarketer of Insider Intelligence, said, “Ecommerce channel ads are gaining popularity as brands realize the value of targeting prospects exhibiting purchase intent within the large ecommerce marketplaces.” Some reports also say that while Amazon has become an ad platform, other ecommerce giants are making more aggressive moves. The trend has been accelerated only by the pandemic as most consumers are reliable on ecommerce.

Known as retail media advertising, this ecommerce channel advertising is advertising done digitally that is shown in websites and apps. Nicole Perrin, another analyst eMarketer of Insider Intelligence, said that this type of advertising had benefited hugely from the pandemic-shaken changes of ecommerce. He further said that many disruptive forces in the digital media world were also driving more money to Amazon, Walmart, and their competitor in the space.

Amazon is still now the largest platform that will earn $13.18 billion in ecommerce ad revenues. This represents 75.7% of overall ecommerce ad spending and 90.6% of Amazon’s net US digital ad revenues. It will maintain its domination in the ecommerce advertising field, intends to touch 77% of the market by 2022. Walmart is also expected to grow its share in the market.

Walmart’s net ecommerce channel ad revenue will reach $849.4 million this year. Walmart will represent 4.9% of total US ecommerce ad expenditures. It is expected to reach 7% by 2022. Apart from Amazon and Walmart, there are also other ecommerce giants that are also expected to increase their shares. eBay’s ecommerce ad revenues will reach $328.3 million, which is 30.3% share. Etsy’s ecommerce ad spending is also probable to reach $133.2 million, up to 69.8% share.