Meta and Google’s Dominance Slips
By: Jenny Montoya · January 05, 2023 · Reading Time: 3 minutes
For years, the US digital advertising market has been controlled by two companies: Alphabet (GOOGL), owner of YouTube, and Meta Platforms (META), owner of Facebook and Instagram. However, the duo controlled just 48.4% of digital advertising dollars in 2022, marking the first year since 2014 that these two companies did not command a majority market share.
Google, whose ad-targeting method relies on user search queries rather than app tracking, was relatively unaffected by Apple’s update. But it still faces headwinds, as marketers have started to explore other ways to spend their digital advertising dollars.
Other Ad Contenders
Amazon (AMZN) is the third-largest digital advertiser and is also the world’s largest online retailer. In 2022, the Everything Store controlled nearly 12% of US digital ad spending. Amazon, like Google, is protected from Apple’s policy. User’s purchase and browsing history power Amazon ads.
Another emerging contender is TikTok, owned by Chinese internet company ByteDance. The social media app boasts almost 100 million monthly users in the US, predominantly Gen Z and millennials. While its overall share of the US digital ads market is still just 2%, TikTok is growing at a faster pace than Google or Meta.
Meanwhile, major streaming platforms like Netflix (NFLX) and Disney+ (DIS) combined to control 3.6% of US digital ad spending last year. This suggests that advertisers are exploring new outlets beyond social media companies or search engines.
Even as Google and Facebook’s dominance slips, marketers still show a heavy preference for digital ad channels over traditional ones. In 2023, industry experts expect nearly two-thirds of total US ad spending to go through digital channels.
If you’re an avid scroller, this should serve as a reminder that it’s important to protect your privacy while browsing the web. You can do this by opting out of data tracking, using incognito windows, and refusing to share sensitive data with apps or websites. Remember, if you don’t have to pay to use a product, you probably are the product.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.