25 Percent of Global Ad Spend Goes to Google or Facebook
Over the past two decades, advertisers have gradually shifted their budgets away from traditional media (e.g. TV, newspapers and magazines) towards online ads. The rise of the smartphone has only accelerated this shift, as smartphones have fundamentally changed the way that people consume content. Ad dollars have always followed eyeballs and thus it doesn’t come as a surprise that mobile ad spending is currently growing a breathtaking rate.
One consequence of the shift towards online advertising is the fact that fewer companies command a larger share of advertising dollars spent. In fact, two companies, you may know them by the names of Google and Facebook, are so dominant in the online world that they account for more than 60 percent of global online ad revenues. According to advertising research company WARC that means the market leaders in search and social media will pocket 1 in 4 dollars spent on media advertising worldwide this year.
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