Are Facebook and Google Monopolies: Nope, Shrinking Share of Online Ads. Proof!
December 29, 2022
I read an interesting article, but I have my doubts about the numbers. The story is from one of the “last person standing” in the Silicon Valley real news datasphere. In the last month or so, the tone of write ups about two of America’s most lovable and well managed companies has turned south, well, maybe south by southwest.
“Share of US Digital Ad Spend, by Company Type” reports:
Google and Meta will together capture 48.4% of all U.S. digital ad revenue this year (28.8% for Google and 19.6% for Meta), down from 54.7% at their peak in 2017 (34.7% for Google and 20.0% for Meta), per data from Insider Intelligence.
And what about the lovable Bezos bulldozer driven pedal to the metal by Andy Jassy? The article states:
- By far, the biggest threat to their collective ad dominance is Amazon, which has grown its ad business to over $30 billion dollars annually.
- By 2024, Amazon is expected to capture 12.7% of all U.S. digital ad dollars, while Meta is expected to capture 17.9%.
TikTok is no big whoop. I suppose that’s why the tech giants are becoming pretzels in their effort create short form content.
Several observations:
- I am not sure how these data were gathered nor the methods used to present such remarkable precision as 54.7 percent in a prediction is an indication that someone did not pay attention in Statistics 101
- Amazon’s ad data are more interesting when the slope between the firm’s ad revenue in 2018 is plotted against Amazon’s ad revenue in 2021. That a slope!
- Blowing off TikTok is problematic. Does the data consider influencers who accept some type of compensation in return for merchandise, trips, or some other fungible asset like a super duper hair curling device?
To sum up: I am not prepared to label those wonderful wizards at Facebook and Google as crew on a doomed steamship named MY Failure.
Stephen E Arnold, December 2022
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