Forrester released new research today about how marketers spent ad dollars on Amazon during the 2017 holidays. According to the research, retailers and consumer packaged goods companies allocate most of their ad budget to the holiday season, with one agency stating that on average clients spend 45% of their annual Amazon budget during this time.

The new research explores how Amazon’s increase in search ad dollars will impact its future in applying purchase data to ad targeting across the web:

  • Many expect Amazon to upend the Facebook and Google advertising duopoly. Marketers are more likely to commit ad dollars to Amazon because its platform gets ads closer to a customer’s buying stage. One marketer explained that her company increased the Amazon Marketing Services budget by more than 50% year over year.

  • Amazon will continue to capture more ad dollars from traditional media channels. As traditional channels like TV and radio shift to digital, the majority of Amazon’s ad business will come from traditional or direct ad buys. For example, a Forrester customer found that with some brands extra spending came from direct publisher buys.

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