Facebook finally admits to competing with Amazon
It has long dominated the online advertising market.
But now it seems that Facebook bosses are feeling the presence of Amazon, who cited the online retailers as a rival.
The social media powerhouse has name-checked Jeff Bezos’ company in a list of media giants during its annual 10K filing with the Securities and Exchange Commission.
This is the first time Mark Zuckerberg’s company has referenced Amazon in its regulatory findings. And the CEO may have good reason to be concerned.
According to eMarketer, Google will take the largest share of the global digital ad market for 2019, comprising 31.3 per cent.
But now Amazon are catching up, as it is expected to grow its share by 2.8 per cent.
Currently, Facebook sits in second place with a 20.5 per cent share.
Meanwhile, Amazon’s ‘other’ revenue category, which is mostly advertising, grew 95 per cent to $3.39billion in the fourth quarter of last year.
Fortune reports shoppers will spend $484billion globally on Amazon this year, up 26 per cent from 2018, while capturing more than half of all online spending in the US.
The news comes amid a difficult period for Facebook, which is currently at the centre of criticism over its controversial research app.
It was found to be ‘preying’ on teenagers as young as 13 by paying them to supply data and have all their phone activity monitored.
Among the data collected from teens by the app was all of their phone and web activity, information on apps they installed, when they used them and what they did on them.
It raises new questions over how much COO Sheryl Sandberg and CEO Zuckerberg knew about the firm’s activities.
The pair are already facing calls from investors to resign over previous privacy breach scandals and PR disasters that have blighted the social media company since last spring.
Sandberg, in particular, has taken hits to her reputation as she continues to be the frontwoman for Facebook’s excuses over its privacy shortfalls, with some questioning whether she’d take the fall and lose her job the firm.
‘I want to be clear what this is. This is a Facebook research app,’ Sandberg told CNBC. ‘It’s completely opt-in.
‘There is a rigorous consent flow and people are compensated… The important thing is that people involved in that research project knew they were involved and consented.’