If you are in the marketing world, you probably already know what I am about to say. You probably think that I’m a few years late with this post…
But here’s why it’s still timely – the problem (if you consider it a problem) is getting worse.
I’m talking of course about the growing importance of Google and Facebook. These two behemoths are collectively responsible for over 60% of digital advertising revenue in the United States. No other company accounts for more than 5%.
Google and Facebook are not just Google and Facebook. They are Instagram, Whatsapp, YouTube, Gmail, DoubleClick, and more. And they continue to gobble up smaller companies for their technology and platforms all the time.
It would not come as a surprise to see the market share of these two companies continue to grow in coming years, based on existing trends. Could they own 70% of the online ad marketing? 80%? 90%?
What are the implications of two companies controlling such a large percentage of the advertising market?
We are already seeing the publishing industry suffer for it. Every other company/website that relies on advertising dollars to survive is going to struggle to compete for those dollars when more and more of them are going to these giants.
And for advertisers themselves, it could mean higher prices and increased competition. With fewer options to go to for prospecting, you will find that you are competing not just within your own industry but against all companies aiming to make the most out of those two largest channels.
If you are not feeling the squeeze now, you will soon. So make sure you know how to optimize and get the most out of these critical sources of new customers.