A survey by CNBC found that many agencies were seeing clients move as much as 60% of their ad budgets away from mediums such as Google search, display and programmatic, and towards Amazon – lured by a more product-focused audience, better conversion rates and Amazon’s power as a “product search engine”.

This week's Digital Minute takes a closer look at the reasons behind this trend.

Read more: Why Google budgets are being diverted towards Amazon.

Video Transcript

Hello, I’m Charles and in this Digital Minute, we’re looking at why some brands are moving big chunks of their ad budgets away from Google, and towards Amazon.

Is Amazon emerging as a dominant force in digital advertising? That’s certainly the view of a number of leading media agencies, who have claimed that some advertisers are moving more than half of their search advertising budgets to Amazon’s advertising platform.

Executives at six US media agencies told CNN that they were all seeing clients who were diverting advertising budget from Google search into Amazon. Some agencies have claimed that as much as 60% of ad budgets that were earmarked for Google, could end up being spent with Amazon in the coming year.

With around 49% of product searches now starting on Amazon, the CNN report claims that advertisers were seeing improved engagement conversion rates when compared to Google search, display and programmatic, for product-related ads.

Google is fighting back against this shift, investing in products such as Google Shopping, but this trend could have a big impact on the digital advertising market. We’ve tried to explore that impact in more detail over on our blog.

Thanks for watching, I’m Charles Grasby, and that was your Digital Minute.

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