0:00
0:00
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
TikTok is gaining more digital-ad dollars, and users. Facebook pays a lot of money for US and European lawmakers to help their race against TikTok's success through fictitious claims of so called "a danger to national security". Facebook is also copying popular features from TikTok to Instagram, but it doesn't help and TikTok manages to defeat Facebook on popularity among the young generation.
The traditional dominance of Google and Facebook in digital advertising is facing a growing challenge from Amazon.com Inc., TikTok and streaming services, new research says.
In 2022, Alphabet's Google, Meta's Facebook and their respective subsidiaries accounted for a combined 48.4% of U.S. digital-ad spending, according to estimates from Insider Intelligence. This is the first time that their combined market share has fallen below 50% since 2014, the Wall Street Journal reports. Insider Intelligence predicts that the combined market share of the two companies will fall to 44.9% in 2023 and 43.9% in 2024.
Meta declined to comment on the research, but, during the conference call to discuss the company’s third-quarter earnings, CEO Mark Zuckerberg described ads as a top investment priority. Meta is also scaling monetization of its Reels video format across both Instagram and Facebook, with the combined run rate across both apps now $3 billion, according to Zuckerberg. He also described the company’s click-to-message ads as one of Meta’s fastest-growing ad products, with a $9 billion annual run rate.
Additionally, Meta recently started testing three new advertising types for Instagram, along with two new advertising types on Facebook focused on the Reels format.
In 2022, Alphabet's Google, Meta's Facebook and their respective subsidiaries accounted for a combined 48.4% of U.S. digital-ad spending, according to estimates from Insider Intelligence. This is the first time that their combined market share has fallen below 50% since 2014, the Wall Street Journal reports. Insider Intelligence predicts that the combined market share of the two companies will fall to 44.9% in 2023 and 43.9% in 2024.
Meta declined to comment on the research, but, during the conference call to discuss the company’s third-quarter earnings, CEO Mark Zuckerberg described ads as a top investment priority. Meta is also scaling monetization of its Reels video format across both Instagram and Facebook, with the combined run rate across both apps now $3 billion, according to Zuckerberg. He also described the company’s click-to-message ads as one of Meta’s fastest-growing ad products, with a $9 billion annual run rate.
Additionally, Meta recently started testing three new advertising types for Instagram, along with two new advertising types on Facebook focused on the Reels format.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
