le and Meta lose their edge as TikTok ads, Amazon, Instacart ads, and TikTok ads grow //
2022 was the first year that Google’s and Meta’s combined advertising market share fell below 50% since 2014. It stood at 48.4% in 2022. This number will drop to 44.9% by 2023.
What’s happening. Amazon, ByteDance’s TikTok, and streaming services such as Netflix continue to grow their presence. It’s not surprising that people are spending less time online at sites like Meta and Google, which is why they are facing challenges, even though they are still growing (albeit slower) than other digital advertising platforms.
Meta and other platforms were also affected by Apple’s iOS14 update 2021. This required that apps on Apple’s devices ask users if their consent to being tracked. Most iPhone users chose not to opt in. Google wasn’t affected by the update. This update relies on customer intention, which is revealed by search terms.
TikTok’s effect. Marketers need more options. TikTok provides them with it. TikTok’s share of the digital advertising market more than doubled by 2022. Amazon gained market share because its ad business can target users based on their browsing history and purchases.
The Washington Post reported that Marc Washington, Chief Executive of Supergut, said that the maker of gut health products used to spend around 80% of its advertising budget on Meta’s Instagram and Facebook platforms. The rest went to Google. He noticed that advertising on Meta’s platforms cost twice as much to bring in new customers than before Apple’s privacy policies. Supergut transferred about half the money it spent on Meta to TikTok. This short-form video platform is popular among younger audiences.
Insider Intelligence stated that TikTok’s share of the digital advertising market has more than doubled by 2022. It currently has close to 100 million active monthly users in the United States. Its overall share of U.S. digital advertising spending remained at 2%.
Amazon’s growth continues. Amazon was responsible for 11.7% U.S. digital advertising spending in 2017, and the company is expected to increase to 12.4% by 2023, Insider reported.
Amazon Chief Financial Officer Brian Olsavsky stated that “our advertising is at the stage where consumers are ready for to spend,” during the October conference call.
Others have followed Amazon’s lead and built digital-ad business based on consumer data. These are known as retail media networks. According to Insider, Walmart Inc. and Instacart combined accounted for about 1.4% of all digital-ad dollars spent last year in the U.S.
Microsoft and Netflix. It’s impossible to talk about Netflix without mentioning Microsoft. They announced last year a partnership that would bring an ad supported subscription plan to Netflix. Vincent Letang, executive vice-president of global market research at Magna Media Investments, called Netflix’s and Disney’s entry in the market “a game-changing event” for ad supported streaming. He said that they bring “a potential huge number of viewers” and a wealth premium video content.
Why we care. Advertisers need to be aware both of new platforms and those in decline. These trends are often predicted long before they are published, but most people can predict them. Reports like these help confirm what many advertisers already know: diversification is the key.
The post Google & Meta lose their edge as TikTok and Amazon increase appeared first at Search Engine land.