After nearly a decade of dominance, the infamous “ad duopoly” may be coming to an end.
For the first time since 2014, Meta and Alphabet no longer account for more than half of all online advertising revenue.
Smaller pieces of pie: The 48.4% of US digital ad spending share held by Google’s and Facebook’s parent companies in 2022 is predicted to drop to 45% by the end of 2023.
Meta’s feeling the bite: Impacted by Apple’s privacy regulations, Meta saw a decrease of 3.3%. Meanwhile, Google wasn’t quite as affected. It even saw a slight increase of 0.8%.
However, both are expected to face a drop in market share as the year goes by.
Who’s cutting these slices? Marketers, it turns out. Apparently we’re hunting for more options and new ad formats such as TikTok or streaming service ads.
Amazon holds third place with 11.7% of the entire market share, while TikTok accounts for 2% of total ad revenue – with more and more brands embracing the platform.
Why we care: Going by the first reports, we may see an even more diverse ad landscape as marketers try to find the best platforms and formats for their slashed budgets.
If the same pace keeps up, you can expect the likes of Netflix and TikTok to gobble up a more significant piece of ad revenue share in the coming years.
But there’s more to think about this year…
