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Is the Digital Ad Duopoly Showing Signs of Weakening?

For years now, Google and Facebook have dominated the digital ad industry, dwarfing all other competitors. In addition, they would almost always outgrow the competitors too, meaning their share of the industry was continuing to get larger and larger. It was even getting to the point where some people were worried about government stepping in to prevent monopolies.

Well these two companies continue to be far in the lead, a new estimate from eMarketer is showing that this lead may be starting to shrink. The most recent estimates show that Google and Facebook will control 56.8% of the market in 2018. This is down from 58.5% in 2017.

There are a number of factors that are contributing to this decline in total market share. Amazon’s ad networks are seeing some very impressive growth rates, and are expected to cross $2 billion in revenue this year. While that will only be around 3% of the market, they seem to be taking their piece of this pie from Google and Facebook.

On top of that, Snapchat is also expected to see a huge rate of growth. The 80% estimated growth will push them up over $1 billion. Again, this is just 1% of the total market, but it is an important piece.

Having these relatively new players to the digital advertising industry taking noticeable amounts of the revenue is going to be seen as a good thing by many. A strong ‘second tier’ of advertisers that include Amazon, Twitter, Snapchat, Yelp, Microsoft (with LinkedIn) and others is starting to solidify, and expand.

Of course, Facebook and Google have nothing significant to worry about yet, but it will definitely be something to watch closely in the coming years to see how this all plays out.

Pesach Lattin
Pesach Lattin
Pesach "Pace" Lattin is one of the top experts in interactive advertising, affiliate marketing. Pesach Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

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