Google and Facebook dominate the digital advertising sector, this has led to the fall of a number of smaller and independent tech companies by 21 percent since 2013 to 185 in the second quarter of 2018. The statistics were stated in the recent report published by The New York Times on Sunday.
The report also stated that the venture capital money being invested into ad-tech start-ups is going down sharply.
Citing global marketing research firms including LUMA Partners, a report stated: “Online advertising companies have struggled for several years as Google and Facebook solidified their grip on digital dollars, slowing revenue for the others.”
Google and Facebook Digital Advertising Market Share
Total spending for online ads was more than $88 billion last year, and over 90 percent share of it belongs to Google or Facebook.
“Amazon is also making inroads into advertising, with a new advertising arm, raising the possibility that it will become a top competitor,” stated the report.
The company gained $2.2 billion in revenue from its advertising business in the second quarter of 2018. Although Facebook earlier predicted that its ads revenue will see the decline, but opposed to it the ad revenue saw the strong growth of 48.8 percent.
A Recent Forrester report states that the brands will be investing 55 percent more in digital marketing by 2023.
“Search engines such as Google will lose some of their appeal for shopping as Amazon and other retail websites gain favour and advertiser dollars over the next few years,” added Forrester report
This moves highlights the changing trend of consumer online shopping habits, consumers prefer e-stores like Amazon or flip kart or other e-stores for shopping needs and approach Google and Bing for getting answers to their shopping related questions. “The shift gives Amazon a reason to strengthen its search features — text and voice — for organic traffic, as well as its search advertising platform,” said the report.