The main players in the online advertising market, Google and Facebook control more than half of the shares of digital advertising dominating the sector, and by far, since between the two they have the 57.6% of the digital market all over the world.
Visual Capitalist has carried out detailing the online advertising market data, highlighting the dominance of Google and Facebook. For their part, and as you can see in this graph, the other platforms struggle to increase somewhat marginal fees.
The online advertising market is divided (almost) only into two
According to this study, approximately 60 cents of every dollar spent on digital ads goes to the coffers of Google and Facebook. Google, who has much more time and experience in the realm of the online advertising market, enjoys the 41% of the total. Facebook, meanwhile, has seen its revenue grow in digital advertising 59% last year.
In fact, the social network broke the expectations of wall street recently, as it revealed that el Facebook mobile business on its own it was bigger than its entire business in 2015. Facebook’s incredible growth shows the other side of the coin when compared to the slow growth of other media worldwide.
For example, classics of mass communication such as, have had difficulties to carry out a full transition to digital, and has earned just $200 million dollars (nearly 193 million euros) per year from online advertising for his business. That makes its relevance in the global market, along with other iconic traditional media companies like Time or News Corp. are too small to even appear on this chart.
Digital media prevail over traditional media and gain ground
Of course since there are still (many) people who watch TV and read newspapers, but by 2019 the main source of advertising will be digital media. So this transition will be vital.
According to the graph, the digital advertising landscape is completely driven by the power of platforms. Most of it is made up of companies that have created (or bought) platforms full of user-generated content that are in daily use.
Of course Facebook stands out, but they are also Youtube (which is owned by Google), Twitter, Snapchat or LinkedIn. The best technology companies have overtaken traditional companies in the world market capitalization.
Renewing and generating better advertising offers has given success to Google and Facebook
Much of the success of this duopoly has been the innovation and constant renewal in its advertising formats. Google has not stopped including novelties in its campaigns, such as the incorporation of , its carousel of images that stand out among the results of ads, as well as being more visually attractive, they focus on the mobile format.
Facebook for its part also strives to optimize mobile advertising. An example is the preloading of content to improve speed on mobile or , and thus prevent users from leaving the websites they access from the ads, before they finish loading.
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