The shift from Facebook to Amazon is nascent, and it's too early to gauge how widespread the phenomenon is or how enduring it will be
Amazon.com Inc.’s move into digital advertising so far has mostly come at the expense of market leader Google since shoppers often bypass the search giant and look for products directly on Amazon.com. Now, the world’s largest online retailer is starting to grab advertisers from Facebook Inc., too.
For years, Facebook -- No. 2 in U.S. digital ad sales -- was largely immune from such encroachments because social-media sites were considered distinct from the search advertising prominent on Amazon and Alphabet Inc.’s Google. Then in June Apple Inc. introduced privacy changes on iPhones that made Facebook advertising less effective.
That prompted some brands to seek alternatives to advertising on the social-media giant and its Instagram unit. Amazon, with an estimated 153 million U.S. Prime subscribers, was an obvious choice.
The shift from Facebook to Amazon is nascent, and it’s too early to gauge how widespread the phenomenon is or how enduring it will be. And many brands remain reluctant to sell on Amazon because they fear losing a direct connection with customers. But New York marketing agency Belardi Wong, whose 300 clients include furniture maker Blue Dot and apparel seller Bombas, said more than 40% of its roster in June reported a decline in the performance of their Facebook ads -- sending them rushing for other options.
“We’re seeing more and more of our clients branch out to marketplaces like Amazon,” agency President Polly Wong said. “More clients are selling on Amazon and having a huge marketplace business.”
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