While you may not be surprised at this statistic, it’s worth thinking about the potential causes and effects of this duopoly.
Clearly, the two companies appear to be getting it right in their ability to collect and use data to target relevant ads to consumers. However, there has also been a rise in the consumer’s ability to use ad blocking programs to filter out unwanted advertisements. And while the amount of people doing this remains rather small, time will tell if consumers will demand changes to create a market with more consumer control.
(Stat Source: Digital Content Next)
This would make it appear that the sky is falling and there is not much room for growth from any of the other companies. However, there are other companies that are offering different experiences and services altogether, like Amazon and Snapchat to name a few. These two are both very successful in their space and Snapchat may become a major player in the digital advertising industry in the next couple of years, their shoppable ads are currently performing well.
If you’re curious on the exact number, the rest of the industry earned just over $9 billion in revenue in the first half of 2016. (Stat Source: Digital Content Next)
The fact that Google is making so much in revenue from their ad platform shows that their advertising works. The struggle for advertisers, of course, is figuring out how to manage costs and continually optimize ads to drive conversions.
So what about the other companies in the industry?
(Stat Source: Pivotal Research)
If you’re a business owner planning your advertising budget for 2017, take a close look at how Facebook and Google advertising can contribute to your marketing goals and business objectives. Take a closer look at how other ad platforms fit into the grand scheme of marketing efforts whether supporting brand awareness or retargeting to stay top-of-mind to consumers and prospects.
Remember that Twitter was once praised by practically everyone for its success. In recent years it’s become more of a platform for businesses, politicians and celebrities, and not so much a place where people are engaging with ads. If you’re focus is business-to-business relationships this may be a platform to explore and test for generating leads or driving traffic from these audiences.
Need help with your digital marketing? Contact us today.