According to a January 2024 report by Business Insider citing Bernstein Research analysis, major internet businesses worldwide are experiencing significantly slower growth due to market saturation. The study examined key sectors including digital advertising, e-commerce, cloud computing, ridesharing, and delivery, finding that expected growth rates for 2024 are roughly half the pace of 2019.
Digital advertising appears most saturated with over 70% online penetration, while e-commerce penetration is now over 20% (excluding food, auto sales, and gas), meaning if it tops out at 30-40% of total retail, it's already halfway along the migration curve. As growth slows, tech giants are increasingly competing in adjacent markets, Amazon is selling cars and challenging Google and Meta in digital advertising, Google is competing with Microsoft and Amazon in cloud computing, Meta is challenging Apple in consumer hardware with Oculus devices, and TikTok is trying to capture e-commerce share from Amazon. Despite everyone chasing generative AI as the next big opportunity, companies are focusing on absolute dollar revenue growth rather than percentages, which analysts view as a concerning sign that the law of large numbers is catching up with Big Tech's massive valuations.
For more detailed analysis on this trend, readers can visit the full Business Insider article.
Photo: Digital Information World - AIgen
Post updated to reflect original reporting source.
Read next: What Can People Expect in Journalism, Media and Technology in 2024?
Digital advertising appears most saturated with over 70% online penetration, while e-commerce penetration is now over 20% (excluding food, auto sales, and gas), meaning if it tops out at 30-40% of total retail, it's already halfway along the migration curve. As growth slows, tech giants are increasingly competing in adjacent markets, Amazon is selling cars and challenging Google and Meta in digital advertising, Google is competing with Microsoft and Amazon in cloud computing, Meta is challenging Apple in consumer hardware with Oculus devices, and TikTok is trying to capture e-commerce share from Amazon. Despite everyone chasing generative AI as the next big opportunity, companies are focusing on absolute dollar revenue growth rather than percentages, which analysts view as a concerning sign that the law of large numbers is catching up with Big Tech's massive valuations.
For more detailed analysis on this trend, readers can visit the full Business Insider article.
Photo: Digital Information World - AIgen
Post updated to reflect original reporting source.
Read next: What Can People Expect in Journalism, Media and Technology in 2024?
