Global Economic Intersection Blog | The Dominance Of Google And Facebook In One Chart | Talkmarkets
The Economic Effects on Finance, Investing, Social Interactions, and Politics
Contributor's Links: Global Economic Intersection

Global Economic Intersection (Econintersect) focuses on the economic effects on finance, investing, social interactions, and politics / public policy.  It features original economic commentary, debate, and economic analysis of economic indicators.  It features original ... more

The Dominance Of Google And Facebook In One Chart

Date: Monday, December 26, 2016 10:49 AM EDT

Over the next couple years, digital advertising is expected to pass television to become the largest ad market in existence.

One would think that this simple fact should translate to a bright future for many publishers, but the reality seems to be quite different. That’s because digital advertising is increasingly dominated by just two players, and everyone else is just begging for scraps.

Today, close to $0.60 of every dollar spent on digital advertising goes to Google and Facebook.

The crazy thing is that these are still early days, especially for Facebook, which grew its digital ad revenue by 59% last year. The social media company recently smashed Wall Street’s expectations again, as it revealed that Facebook’s mobile business alone was bigger than its entire business back in 2015 Q3.

This lopsided growth is quite the juxtaposition to the media stalwarts of the world.

Iconic brands such as The New York Times have struggled to make a full transition to digital, making only $200 million per year from the online ad side of their business. That makes the Times, along with other traditional media companies like News Corp, Time Inc, or Hearst, too “small” to even show up on our chart.

(Click on image to enlarge)

Disclaimer: This and other personal blog posts are not reviewed, monitored or endorsed by TalkMarkets. The content is solely the view of the author and TalkMarkets is not responsible for the content of this post in any way. Our curated content which is handpicked by our editorial team may be viewed here.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.