For the first time since 2014, Google and Meta’s share of the advertising market fell below 50%. At the end of 2022 that number was 48.4% and is expected to drop to 44.9% by the end of this year.
With other companies like Amazon, Instacart, and TikTok shouldering their way into the ad space, combined with streaming services like Netflix exploring how they might fit in the digital ad space, it should be no surprise that Google and Meta are seeing their share of the ad space fall.
The TikTok Effect
As marketers search for more options it’s hard to ignore the increased popularity of TikTok. The short-form video platform saw their ad market increase by more than double in 2022. TikTok has nearly 100 Million users in the US alone; despite this, their ad share sits at just 2%. As long as the regulators don’t shut them down, TikTok market share will certainly continue to grow in 2023.
The Growth of Amazon
Amazon has leveraged their ability to use a user’s purchase and browsing history to increase their digital ad footprint. Amazon made up 11.7% of US digital ad spending in 2022. This number is estimated to grow to 12.4% this year.
Amazon has also paved the way for other e-commerce retailers to shine. Walmart, eBay, Etsy, and Instacart combined for 1.4% of US digital ad dollars in 2022.
Netflix + Microsoft
The partnership between Microsoft and Netflix is an interesting one. The two giants are working on an ad-supported subscription plan to the Streaming Service.
With online streaming services like Spotify, Netflix, and Disney entering all entering the digital ad arena, it’s an exciting time to be in advertising.
Why We Care
Google and Meta have been on top for so long, they’ve barely had to bother worrying about competition. But this is changing. With the ever-increasing options for digital advertising platforms, navigating the online marketing is growing in complexity. If you need a marketing partner who can stay on top of all this for you and generate results with measurable ROI, reach out.
