- Amazon.com (AMZN +1.3%) may rapidly make up some of the huge patch of ground between it and digital advertising leaders Facebook (FB +1.4%) and Google (GOOG +1.4%, GOOGL +1.5%) if the ad industry's giants follow through with a plan to heavily increase spending with the retail disrupter.
- According to multiple executives, WPP (LON:WPP) (WPPGY +1%), Omnicom (OMC +0.2%) and Publicis Group (PUBGY -0.5%) plan to increase ad spending with Amazon.com to $800M or more in 2018 -- what could be a 40-100% increase, depending on the firm.
- WPP spending on Amazon ad products and platforms will reach $200M this year, says CEO Martin Sorrell, and may jump 40-50% in the coming year. Publicis is already spending that much and looks to boost that figure to $300M in 2018.
- Omnicom, meanwhile, could double its current $100M spending.
- The appeal for ad agencies (much to Amazon's benefit) is the search for a viable challenger to what has become a digital advertising duopoly. Facebook and Google are expected to draw $62B in combined U.S. ad revenue next year, vs. $1.65B Amazon is expected to generate this year.
- Now read: Why Amazon's Decision To Abandon Streaming Service Talks Was A Good One
Original article