The total ad spend conducted by marketers online has historically gone to two major corporations, namely Meta and Google. These two tech giants had quite a firm grasp on the industry, reaching a total percentage share of 55.2% of total ad spend in the US by 2019. With all of that having been said and now out of the way, it is important to note that their control over the industry appears to be slipping.
This duopoly has seen its market dominance diminish in the face of stiff competition from newcomers like TikTok, as well as industry titans like Amazon trying to throw their hat into the ring. That has resulted in their shared control of total ad spend declining to just over half, or 50.5% to be precise, in 2022. Their share is projected to dip below the 50% mark to just 48.7% in 2023, and according to these estimations the share will decline even further to 47.7% by 2024.
Meta has become persona non grata after its controversial name change failed to lift the cloud of consternation that the company was faced with after numerous privacy violations were revealed as well as their harmful algorithm. The increase in the number of companies vying for total ad spend is also reducing the share that Meta and Google enjoyed for so long, with Walmart and Apple also trying to get a larger share of the ad spend market.
Walmart is one of nine new platforms that are predicted to have billion dollar advertising businesses by next year with all things having been considered and taken into account. The other eight are Spotify, Roku, Snapchat, Instacart, Pluto TV, Yelp, IAC and Tubi. Hence, it can be said that the diminishing market share of the duopoly is the direct result of increased competition in the industry, but in spite of the fact that this is the case Meta’s own failings share at least part of the blame as well.
Ad spending in the US has increased by 13.2% year over year when compared to the number seen in 2021. Much of this growth is attributed to companies other than Meta and Google, and even Amazon does not represent a sizable chunk of this growth since the aforementioned 9 upcoming companies are driving much of it.
We might see a completely altered digital ad spend landscape in the next decade as more companies invest in the industry and supplant Meta and Google. Meta might lose control over the market entirely as marketers go for more favorably received platforms that will give consumers a better impression of them.
Read next: PCs are now facing a decline in demand after reaching a peak during the pandemic
This duopoly has seen its market dominance diminish in the face of stiff competition from newcomers like TikTok, as well as industry titans like Amazon trying to throw their hat into the ring. That has resulted in their shared control of total ad spend declining to just over half, or 50.5% to be precise, in 2022. Their share is projected to dip below the 50% mark to just 48.7% in 2023, and according to these estimations the share will decline even further to 47.7% by 2024.
Meta has become persona non grata after its controversial name change failed to lift the cloud of consternation that the company was faced with after numerous privacy violations were revealed as well as their harmful algorithm. The increase in the number of companies vying for total ad spend is also reducing the share that Meta and Google enjoyed for so long, with Walmart and Apple also trying to get a larger share of the ad spend market.
Walmart is one of nine new platforms that are predicted to have billion dollar advertising businesses by next year with all things having been considered and taken into account. The other eight are Spotify, Roku, Snapchat, Instacart, Pluto TV, Yelp, IAC and Tubi. Hence, it can be said that the diminishing market share of the duopoly is the direct result of increased competition in the industry, but in spite of the fact that this is the case Meta’s own failings share at least part of the blame as well.
Ad spending in the US has increased by 13.2% year over year when compared to the number seen in 2021. Much of this growth is attributed to companies other than Meta and Google, and even Amazon does not represent a sizable chunk of this growth since the aforementioned 9 upcoming companies are driving much of it.
We might see a completely altered digital ad spend landscape in the next decade as more companies invest in the industry and supplant Meta and Google. Meta might lose control over the market entirely as marketers go for more favorably received platforms that will give consumers a better impression of them.
Read next: PCs are now facing a decline in demand after reaching a peak during the pandemic
