Alphabet Google Factoid: Media Spend Control

May 31, 2016

I noted “Google Now Controls 12 Percent of All Global Media Spend.” My immediate reaction was, “Just 12 percent.” I assumed that the Alphabet Google thing had cornered much more of the media spend. I learned:

Alphabet controls 12 percent of all global media spend, which primarily comes from Google and YouTube’s ad sales. The company collects $60 billion in U.S. ad spend—a figure 166 percent larger than No. 2 ranking The Walt Disney Company. To compare, Google’s ad revenue was 136 percent larger than Walt Disney last year. Alphabet’s overall ad revenue is up 17 percent year-over-year.

Google is not without competition. I love “competition” in the online digital world. The write up points out:

Facebook in particular continues to become an advertising juggernaut. The social network jumped from No. 10 in 2015 to No. 5 this year, making it the fastest-growing company on Zenith’s list with 65 percent year-over-year growth. Chinese Internet company Baidu is the second fastest-growing company, with ad revenues up 52 percent.

I am not an ad expert. I certainly don’t know anything about media spend. After 15 years of slogging, the 12 percent figure strikes me as interesting. It seems that in a shorter time period, Facebook has been the hot item. Search or social media? Which is the “winner”? Both? Who are the losers?

Traditional media. Another surprise?

Stephen E Arnold, May 31, 2016

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