Advertisers are starting to shift spending on search ads from Alphabet Inc.’s Google toward Amazon.com Inc., a sign of how the online retailer is capitalizing on becoming the top destination for consumers’ product searches.
WPP PLC, the world’s largest ad buyer, spent roughly $300 million on behalf of its clients on Amazon search ads last year, and about 75% of that money came from Google search budgets, according to people familiar with the matter. It spent between $100 million and $150 million on Amazon search in 2017, the people said.
WPP spent north of $3 billion globally on Google search advertising last year, one of the people said.
Omnicom Group Inc., another Madison Avenue giant, said between 20% and 30% of the dollars its clients spent on search advertising last year went to Amazon search ads, with the majority of the cash shifted from Google search budgets. The New York ad company spent about $1.2 billion on U.S. search ads last year, according to people familiar with its ad spending.
Read the full MarketWatch article.
