The dominance of tech companies has started to become so pronounced that they form harmful monopolies because that’s the kind of thing that could end up stifling competition and innovation. Despite this being the case, their monopolization has only continued and around 5 companies now hold 53% of the total advertising market, an increase of 7 points from 46% last year.
Nearly three-quarters of the global advertising industry, or 74% to be precise, is controlled by just 25 companies. This is a surprising increase from the 43% share they held in 2016, especially considering that only 5 companies now own a much larger share than 25 companies split off a year ago. barely six years, everything having been considered and taken into account. .
The five companies that receive more than 53% of global advertising revenue are Google, Meta, Alibaba, Bytedance and Amazon. It’s interesting to see Chinese companies here as well, although they are primarily focused on domestic ad revenue, with only TikTok seeing some form of global appeal.
All of that said and now dismissed, it is important to note that the landscape of advertising revenue ownership in the United States has changed dramatically over the past decade. In 2012, five companies received 20% of online advertising revenue in the United States, and only Google outlived this group, the others being media companies that competed in favor of large companies that have a more focused approach. Internet.
Inflationary pressures are making it increasingly difficult for new platforms to enter the fray, with many forced to work with or for the aforementioned five companies. Google has by far the biggest slice of the pie, and with advertising market growth below 8% this year, their dominance could become even more insurmountable than it already is. Meta control could be slipping, however, which could allow new companies to become more competitive in terms of ad revenue.
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