Of the $590.4bn spent on advertising worldwide last year, 24.5% – or $144.6bn – went to the Google/Facebook ‘Duopoly’. This is after Google’s payment of $26.7bn to its network members (third party platforms that host Google’s ads). The Duopoly’s share is up from 20.3% in 2017, and is more than double the 10.8% recorded in 2014. The pair are expected to increase their share again this year, up 4.1pp to 28.6% ($176.4bn).
Looking only at the internet ad market, the Duopoly took over half (56.4%) of ad money in 2018 – a share which is expected to rise to 61.4% this year. This would, in turn, result in the combined ad revenue for other online platforms declining for the first time (-0.7%, to $111.0bn). Online platforms beyond the Duopoly are expected to take 18.0 cents in the ad dollar this year, down from a peak of 19.6 in 2017.
Owners of traditional media channels have, collectively, recorded falling ad revenue in recent years. In 2014, this group took 74.0 cents of each dollar spent on advertising, though this is expected to dip to 53.4 this year. While the fortunes of individual media owners will differ, the pool of ad money available to them is shrinking.
This Data Point was drawn from March's Global Ad Trends report, which focuses on the Google/Facebook Duopoly's current dominance and future challenges.