Some of the hype around Amazon's ad business has faded and advertisers are thinking more carefully about which platforms provide the highest amounts of sophistication and return on investment.
duopoly that has dominated the digital advertising ecosystem. But that ad business growth is slowing as the hype around Amazon's ad business has faded and advertisers are thinking more carefully about which platforms provide the highest amounts of sophistication and return on investment.
"But now, brands are taking a step back and trying to better understand how Amazon fits" into their overall strategy, McNabb said. "They're tightening up their strategy a little bit. With that comes less ad spend. They're not throwing the kitchen sink at Amazon anymore." "I think 2018 was just a year of substantial growth because of more ad placements, better platforms, more ad opportunities," he said. "I think it was just a year of 'Wow, Amazon is a real contender and has a lot more opportunity than I thought.' Now, I think the industry, both agencies and sellers, [is] far more familiar and sophisticated when it comes to spending that money.
"I think this is opening their eyes to other areas like Walmart or Target or Best Buy or Kroger or any of these other major e-commerce websites also ramping up their digital capabilities, because they've seen what Amazon has done," Colburn said.
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