Marketing Madness

Is the Digital Ad Duopoly Showing Signs of Weakening?

Google and Facebook Losing Small Market Share

For years now, Google and Facebook have dominated the digital ad industry, dwarfing all other competitors. In addition, they would almost always outgrow the competitors too, meaning their share of the industry was continuing to get larger and larger. It was even getting to the point where some people were worried about government stepping in to prevent monopolies.

Well these two companies continue to be far in the lead, a new estimate from eMarketer is showing that this lead may be starting to shrink. The most recent estimates show that Google and Facebook will control 56.8% of the market in 2018. This is down from 58.5% in 2017.

There are a number of factors that are contributing to this decline in total market share. Amazon’s ad networks are seeing some very impressive growth rates, and are expected to cross $2 billion in revenue this year. While that will only be around 3% of the market, they seem to be taking their piece of this pie from Google and Facebook.

On top of that, Snapchat is also expected to see a huge rate of growth. The 80% estimated growth will push them up over $1 billion. Again, this is just 1% of the total market, but it is an important piece.

Having these relatively new players to the digital advertising industry taking noticeable amounts of the revenue is going to be seen as a good thing by many. A strong ‘second tier’ of advertisers that include Amazon, Twitter, Snapchat, Yelp, Microsoft (with LinkedIn) and others is starting to solidify, and expand.

Of course, Facebook and Google have nothing significant to worry about yet, but it will definitely be something to watch closely in the coming years to see how this all plays out.

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Michael Levanduski

Michael Levanduski is the assistant editor of Performance Marketing Insider, and an experienced freelance writer. He writes content for a wide range of sites in virtually every niche, though he specializes in technical writing as well as creating content for the performance and internet marketing industry. Michael was born in Grand Rapids, MI where he still lives with his wife and three children.

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