Headlines

Alibaba Handles The World’s Third-Largest Ad Business

The Alibaba stands a chance to garner about $23.5bn from selling ad inventory across its e-commerce properties this year, a rise of 6.6% from 2019.

Brandnewsday gathers that Warc made this known in its latest Global Advertising Trends report: The pivot to e-commerce summarising the latest research from Warc’s Data platform.

This gives Alibaba control of the third-largest advertising business globally, behind only Alphabet and Facebook. Amazon places fourth; it stands to make $18.1bn in 2020 – up 35.6% from 2019.

Advertisement

Global, E-Commerce advertising spend, US$Billion and year-on-year % change

Alibaba’s ad business has cooled markedly this year – along with the wider Chinese online market (its core trading territory) – and growth now trails local rivals such as JD.com and Pinduoduo, resulting in lost share.

READ: Jeff Bezos Takes Barton From Bill Gates, Becomes Richest Man Alive

Alibaba

Elsewhere, Chinese social commerce platform Pinduoduo is set to see its ad income leap 33.8% to over $5bn, ahead of local rival JD.com on $3.6bn. None of the e-commerce platforms monitored by Warc is expected to witness a fall in advertising revenue this year.

Advertising spend on e-commerce platforms is set to rise sharply this year despite the global recession – reaching a total of $58.5bn – as brands look to capitalise on the boom in online shopping as a result of the Covid-19 outbreak, finds Warc, the international marketing intelligence service.

Advertisement

READ: Global E-Commerce Hits $25.6 Trillion– Latest UNCTAD Estimates

Advertising investment across e-commerce sites such as Amazon, Tmall and Rakuten, omnichannel retailers such as Walmart and Carrefour, and social commerce on platforms such as Pinduoduo and TikTok is set to increase 18.3% worldwide, growing 30 times faster than the wider online ad market and in stark contrast to a forecast fall of -8.1% for the total advertising industry this year.

Consumers will spend an additional $183bn online this year due to Covid-19

Advertisement

Online sales are set to rise by 30.4% to $2.9trn worldwide this year, according to data from Edge by Ascential. This represents a forecast upgrade of 8.2 percentage points – $183bn – since the Covid-19 outbreak began. Domestic growth rates range from +19.0% in the UK, to +22.1% in the US and +37.6% in China.

Taken together, e-commerce sales will account for 88% of global retail growth in 2020. The top five platforms will tighten their grip on the market this year, turning over an additional $529bn combined as a result of the outbreak. E-commerce platforms Alibaba (+$221bn), Pinduoduo (+$122bn) and Amazon (+$92bn) have seen the sharpest forecast upgrades since the outbreak.

Advertising spends – particularly within the FMCG sector – is moving online as a result of the shifting complexion of sales since the Covid-19 outbreak. Over 8% of Unilever’s business is now done online – the company made 71% (€2.2bn) of its total 2019 e-commerce sales in just the first six months of 2020.

Advertisement

READRichest Man: See Top 10 Countries With Highest Number Of Billionaires

Facebook Comments
Adebayo

Adebayo is a Content Developer and website manager who loves to learn, unlearn and relearn. He has a knack for exploring the tech world. He is always thirsty to learn as the tech ecosystem evolves every day.

Recent Posts

Apple Unveils iPhone 17 Air, Slick, Slimmer Than Previous Models (PHOTOS)

Apple Inc is set to present a slimmer iPhone 17 Air model, marking a potential…

2 weeks ago

Six-Year-Old Ella Shoots, Kills American Police Officer In Mother’s Defense

A six-year-old girl, Ella, fatally shot a 28-year-old American police officer last month after witnessing…

2 weeks ago

LIRS Urges Taxpayers To Meet March 31 Deadline For Annual Tax Return Submission

The Lagos State Internal Revenue Service (LIRS) reminds all individual taxpayers, including self-employed individuals, those…

2 weeks ago

Stanbic IBTC Bank Partners Autochek To Boosts Car Ownership, Disburses N4Bn

Stanbic IBTC Bank, a prominent financial institution in Nigeria, has partnered with Autochek, an innovative…

3 weeks ago

Stanbic IBTC PMI®: Output Growth Accelerates To Fastest In Just Over One Year

The headline figure derived from the survey is the Stanbic IBTC PMI® - Purchasing Managers’…

3 weeks ago

Stanbic IBTC Bank Reintroduces Its Private Banking Offerings To Empower Nigerians Build Lasting Wealth

Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings and a leading financial service solutions…

3 weeks ago

This website uses cookies.