Digital Advertising Shift

In digital advertising, there are two main contenders — search advertising on Google and social media advertising on Facebook, Twitter and Instagram. Since many years, Facebook has remained number 2 in the US digital ad sales. In June 2021, Apple introduced privacy changes on iPhones. This made Facebook advertising less effective. Brands started seeking alternatives. Amazon, a marketplace, emerged as an effective choice, and advertising started shifting to it from Facebook. It is too early to call this a trend. Users do search directly on Amazon, but many brands are reluctant to come on Amazon, as they fear losing a direct connection with customers. Even Amazon fears that ad clutter will alienate its clients. However, Amazon also realises that advertising has the potential to subsidise its low -margin e-commerce business.

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