When it comes to digital advertising in the US, there are really just two companies that one needs to be aware of. Not surprisingly, they are Google and Facebook. According to information released from Digital Content, the two companies account for somewhere between 60% and 70% of the total market for the 3rd quarter of 2017. The remaining market is split between many different companies, each with a relatively small percentage, relatively speaking.
Facebook’s third quarter earnings reported that their ad revenue has grown 49% year over year, and mobile ads alone have gone up by 57% (to $8.9 billion).
Not only are more people advertising on these platforms, but the cost per ad is rising considerably as well. Facebook reports that the average price per ad has gone up by 35% over the past year, with an increase of 10% on the total number of impressions served.
David Wehner, a CFO at Facebook, said, “As supply growth has slowed, then there’s more competition, and you’re seeing price increases as demand continues to grow.” This is not a new concept for any industry, but for many marketers, it is resulting in having to either spend quite a bit more on their ad budget, or cut back the number of ads they are displaying.
The overall control from these two companies includes all their properties. Facebook, for example, also owns Instagram, which has more than 2 million active monthly advertisers. Google has ads on their search, YouTube, and many other locations online.