The duopoly lost its dominance in the digital advertising market in the US to increasing competition from rivals such as Amazon, Tiktok, Microsoft and Apple.
The share of North American ad revenue held by Meta (Facebook’s parent company) and Alphabet (owner of Google) projects a drop of 2.5% or 48.4% for this year, the first time the two groups will not have a majority share. in the market since 2014. That will mark the fifth consecutive annual decline for the duopoly, whose market share fell from 54.7% in 2017 and is projected to fall to 43.9% by 2024.
Tech groups are increasingly fighting for a piece of the $300 billion digital ad market, even as companies around the world are cutting their ad budgets in response to rising interest rates. and high inflation.
Amazon and Apple are increasing their advertising teams. In July, Netflix announced that it would partner with Microsoft to create a level of its streaming service. streaming supported by advertising.
Mark Zuckerberg, CEO of Meta, attributes the recent drop in revenue to Apple’s privacy changes that make it harder to track users and target advertising, and the growing popularity of the viral video app TikTok, owned by from China’s ByteDance.
Amazon’s foray into the world of digital ads had a lot to do with the dominance of Meta and Google. After years of experimenting in the market, it stepped up its efforts in 2015 and has since skyrocketed from less than $1 billion in ad revenue to an estimated $38 billion.
Apple also emerged as a new threat. Its ad revenue went from less than $2.2 billion in 2018 to more than $7 billion this year. While that’s just 1.2% of the global market, it’s already more than Snapchat and Pinterest combined, and some estimates suggest Apple could hit $30 billion in ad revenue by 2026.
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Meta and Alphabet with less advertising market in the US