SOPA Images via Getty
Meta and Alphabet have lost their dominance over the digital advertising market they ruled for years, as the duopoly is hit by fast-growing competition from rivals Amazon, TikTok, Microsoft and Apple.
The share of US ad revenue held by Facebook’s parent company Meta and Google owner Alphabet is expected to fall 2.5 percentage points this year to 48.4 percent. Insider Intelligence group.
This will be the fifth consecutive annual decline for the duopoly, whose market share has fallen from a peak of 54.7 percent in 2017 and is expected to drop to 43.9 percent by 2024. Globally, shares of Meta and Alphabet fell by 1 percentage point to 49.5 percent. percent this year.
Jerry Dischler, head of advertising at Google, told the Financial Times that fierce rivalry from new entrants reflects an “extremely dynamic advertising market”.
Regulators in the US and Europe have added antitrust scrutiny, such as prosecuting Google for allegedly promoting its products over rivals.
In December, Facebook owner Meta received a complaint from EU watchdogs over concerns that the social network’s classified ad service is being unfair to rivals. Tech groups are fighting harder than ever for a share of the $300 billion digital advertising market, even as companies around the world cut their advertising budgets in response to rising interest rates and high inflation.
Amazon and Apple have expanded their advertising teams. In July, Netflix announced it would partner with Microsoft to build an ad-supported tier of its streaming service.
Meta CEO Mark Zuckerberg blames the recent declines in revenue on Apple’s privacy changes, which make it harder to track users and make ads more targeted, as well as the growing popularity of the viral video app TikTok, owned by Chinese parent company ByteDance.
