According to the website Visual Capitalist, digital advertising is expected to outpace TV advertising in the next few years. Consumers are spending more time on the internet, foregoing traditional television news for Twitter and watching YouTube instead of late night talk shows. It used to be that advertisers would flock to network television to buy some prime spots alongside popular shows. As more and more people are turning to Netflix, Hulu, Amazon Prime Video, and other ways of consuming media, advertisers are seeking new ways to influence you.
According to Visual Capitalist, Google and Facebook are currently dominating the digital advertising space with a combined share of 57.6%. Nearly .60¢ of every dollar spent in the space goes to Google and Facebook. While these are the top two companies who have the most share of online advertising, it is Google that dominates everyone with 41%.
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.
In the digital advertising landscape, it’s all about the power of platforms. The majority of our chart is loaded with companies that have created (or bought) platforms full of user-generated content that people use every day. Facebook, YouTube (owned by Google), Twitter, Snapchat, LinkedIn, and Yelp all make the cut on our chart, because they have gained massive scale.
These companies will continue to grow their digital advertising despite more and more consumers’ dislike of them. Many consumers have taken to using ad blockers to stop these ads from pouring into their streams, but even ad blockers want a piece of the pie. Earlier this year, AdBlock Plus decided to start allowing ads through their filters as a way to make money. Some websites have even taken to blocking the ad blockers by restricting access to their content if you are running one. Digital advertising is here to stay and Google and Facebook are clearly leading the way.
What do you think of Google and Facebook’s dominance over online advertising? Let us know in the comments below or on Twitter, Facebook and Google+.Source: Visual Capitalist