The 2022 year marked the first time since 2014, that Google’s and Meta’s combined advertising market share fell below 50%. It stood at 48.4% in 2022. This number will drop to 44.9% by 2023.
Let’s find out. Amazon and ByteDance’s TikTok, as well streaming services such Netflix, are growing in popularity. It’s not surprising that people are less likely to spend time on websites like Meta and Google, which is why they face challenges, even though their growth has been slower than some other digital advertising platforms.
Meta and other platforms were also affected by Apple’s iOS14 update 2021. This required that apps ask their users whether they want to be tracked. Most iPhone users chose not to opt in. Google wasn’t affected as the update relied on user intent and search terms.
TikTok’s effect. TikTok offers more options for marketers. TikTok has more digital advertising market shares than it did in 2022. Amazon, however, gained market share because its ads business can target customers based on their browsing histories and purchases.
The Washington Post reports that Marc Washington, Chief Executive of Supergut said that the company behind gut-health products spent about 80% on Meta’s Instagram and Facebook platforms. The rest went to Google. He noticed in early 2022 that advertising on Meta’s platforms cost twice as much to bring new customers than before Apple’s privacy policies. Supergut transferred about half the money it had spent on Meta to TikTok. This short-form video platform is popular among younger customers.
Insider Intelligence stated that TikTok has more than 100 million monthly active US users and its share of the digital advertising market. Its overall share of U.S. online ad spend remained at 2%.
Amazon’s growth continues. Amazon was responsible for 11.7% U.S. digital advertising spending in 2017, and the company is expected to increase to 12.4% by 2023, Insider reported.
Amazon’s Chief Financial Officer Brian Olsavsky stated that “our advertising is at the stage where consumers are ready for to spend,” during the October conference call.
Others have also followed Amazon’s lead and built digital-ad business based on consumer data. These are known as the retail media networks. According to Insider, and combined accounted for about 1.4% in digital-ad spending in the U.S. in 2013.
Microsoft and Netflix. It’s impossible to talk about Netflix without mentioning Microsoft. They announced last year a that would bring an ad supported subscription to Netflix. Vincent Letang is the executive vice president of worldwide market research for Magna Media Investments. He called Netflix’s and Disney’s entrance into the streaming market “a major turning point” in ad-supported streaming. He said that they bring “a potential huge audience” and an abundance of high-quality video content.
We care. Advertising should keep an eye out for emerging platforms and those in decline. These trends are often predicted long before they become public. Reports like these help confirm what advertisers know: diversification is the key.
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