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Big Tech Received 68% of Ad Revenue in 2022

Advertising revenue has been skyrocketing as of late, reaching around half a trillion dollars in 2022 so far. Most of this revenue, or around 68% to be precise, has ended up going to the Big Four tech companies. These companies are Apple, Alphabet, Amazon and Meta. While China has established itself as an entirely separate market, outside of the Chinese mainland it’s these four companies that are earning the highest revenues from this industry.

With all of that having been said and now out of the way, it is important to note that much of the growth in ad revenue in 2022 has been a direct result of the rise of video streaming. Ad agencies and brands have been pouring ever more cash into ads that are viewed next to video based content, and it is estimated that video ads will outstrip text ads in terms of investment by 2025.

Video based ads have long been a mainstay of the advertising industry, but in spite of the fact that this is the case things are still changing quite dramatically in that arena. Broadcast TV companies are seeing a lower proportion of ad revenue coming their way, since streaming services are proving to be better options than might have been the case otherwise.

Small businesses are benefiting from the shift to IPTV and streaming services. They no longer have to deal with middle men but can instead put their ads up by getting directly in touch with the platforms that they want the ads to be displayed on.

However, a major seismic shift that is occurring in the world of digital ads has to do with recent privacy regulations. GDPR regulations in the EU along with Apple’s new policies that prevent third party tracking are forcing companies like Meta to retool their platforms in order to stay relevant. We are living in a time of rapid change, and there is no telling who will end up coming out on top. Big tech has a huge role to play here, and it is unlikely that their role will dimmish in the coming decade.


H/T: FT

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