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| Chart and Data: Digital Media | | Ad buyers expect to spend more on Amazon, Instagram and less on core Facebook, Google… | | | * This chart was delivered to Business Insider Intelligence Ultimate Digital Media Research Bundle subscribers. You can get full access to this chart as well as other timely updates when you sign up today. |
| Advertisers say they will increasingly allocate digital ad dollars to Amazon and Instagram, according to a Cowen survey of 50 ad buyers responsible for $14 billion in annual digital ad spend. By 2020, advertisers expect digital ad spend share on Amazon to double to 12% of total digital spend, up from 6% in 2018, and spend on Facebook-owned Instagram to grow two percentage points to 11% by 2020. Advertisers may be funding their increased spending on these platforms by pulling dollars from core Facebook: Respondents expect their spend on core Facebook to fall by three percentage points to 17% by 2020, down from 20% in 2018, or from Google Search, expected to fall four percentage points over the same time period.
- Amazon is likely to grow its ad business at a faster clip than anticipated.
Amazon has made several recent developments that could quickly accelerate its ad revenue growth, particularly related to video advertising that could steal dollars from television. Last week, Amazon launched its ad-supported VOD (AVOD) service called Freedive that will be offered on an active install base of 30 million Fire TV devices, surpassing Roku's former market dominance. Further, Amazon continues to simplify its varied ad products under a single umbrella, rebranded as Amazon Advertising in September. Simplification of the ad buying process remains a priority for brands and advertisers, a desire that is also driving the shift away from the fragmentation of the traditional agency model. - Instagram's lead over core Facebook will...
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