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“Digital Duopoly”

If you didn’t know that Google and Facebook own the most market share in the digital ad market, well, let’s get you up to speed. We will start by throwing some numbers out there:

  • In 2017, Google’s US digital ad revenue was $35 billion
  • Facebook’s US digital ad revenue was $17.4 billion
  • Total digital ad spending in 2017 was $83 billion
  • Google took 38.6% of total digital ad spending in 2017
  • Facebook took 19.9% of total digital ad spending

So, why are these numbers significant?

eMarketer is predicting that the “digital duopoly” will see a decrease in US digital ad market share this year. Currently, Google and Facebook own a combined 58.5% of the market share but that will shrink to 56.8%.

Amazon.com and SnapChat are beginning to gain some traction with their piece of the pie. Amazon is not a huge player in digital advertising, but they are increasing their market share with a projection of $2.89 billion in digital ad revenue.

According to eMarketer, Amazon will begin to increase that market share by 2.7% this year and continue to climb the ladder through 2020. In fact, Google’s digital ad revenue has been declining for the past couple of years which is linked to having digital ads found on controversial sites. This concerning because digital ad spending is expected to grow to $107 billion over the year.

This is a great opportunity for a small ad player like Amazon to increase their market share. This isn’t to say that Amazon is going to beat out “the digital duopoly” anytime soon but what is interesting is how Amazon and Snapchat are growing much faster than expected.

 

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