The dominance of tech companies has started to become so pronounced that they are forming monopolies that are harmful because of the fact that this is the sort of thing that could potentially end up stifling competition and innovation. In spite of the fact that this is the case, their monopolization has only continued, and about 5 companies now own 53% of the total ad market which is a 7 point increase from last year’s 46%.
Almost three quarters of the global ad industry, or 74% to be precise, is controlled by just 25 companies. This is a startling increase from the 43% share that they owned in 2016, especially when you consider how just 5 companies now have a far larger share than 25 companies were splitting up just six years ago with all things having been considered and taken into account.
The five companies receiving over 53% of global ad revenue are Google, Meta, Alibaba, Bytedance and Amazon. It is interesting to see Chinese companies here as well, although they are mostly focused on domestic ad revenues with only TikTok seeing some form of global appeal.
With all of that having been said and now out of the way, it is important to note that the landscape of ad revenue ownership in the US has changed drastically in the past decade. In 2012, there were five companies receiving 20% of US online ad revenue, and only Google has survived from that group with the rest being media companies that fell out in favor of larger firms that have a more internet oriented approach.
Inflationary pressures are making it increasingly difficult for new platforms to enter into the fray, with many of them being forced to work with or for the aforementioned five companies. Google has the biggest piece of the pie by far, and with the ad market growing at a lower than expected 8% this year their dominance might become even more insurmountable than it already is. Meta’s control might be slipping, though, which may allow newer companies to become more competitive in terms of ad revenue.
H/T: Axios
Read next: Disney’s Ad Revenue Soars Past Netflix, Gap Expected to Narrow by 2025
Almost three quarters of the global ad industry, or 74% to be precise, is controlled by just 25 companies. This is a startling increase from the 43% share that they owned in 2016, especially when you consider how just 5 companies now have a far larger share than 25 companies were splitting up just six years ago with all things having been considered and taken into account.
The five companies receiving over 53% of global ad revenue are Google, Meta, Alibaba, Bytedance and Amazon. It is interesting to see Chinese companies here as well, although they are mostly focused on domestic ad revenues with only TikTok seeing some form of global appeal.
With all of that having been said and now out of the way, it is important to note that the landscape of ad revenue ownership in the US has changed drastically in the past decade. In 2012, there were five companies receiving 20% of US online ad revenue, and only Google has survived from that group with the rest being media companies that fell out in favor of larger firms that have a more internet oriented approach.
Inflationary pressures are making it increasingly difficult for new platforms to enter into the fray, with many of them being forced to work with or for the aforementioned five companies. Google has the biggest piece of the pie by far, and with the ad market growing at a lower than expected 8% this year their dominance might become even more insurmountable than it already is. Meta’s control might be slipping, though, which may allow newer companies to become more competitive in terms of ad revenue.
H/T: Axios
Read next: Disney’s Ad Revenue Soars Past Netflix, Gap Expected to Narrow by 2025
