This article is part of a limited edition series called The 2023 Notebook, designed to guide you through marketing and media buying in the New Year. Check out the series here.
Alphabet and Meta’s “duopoly” dominance of the advertising industry is set to continue for the foreseeable future.
Joint hegemony of two companies formerly known as Facebook and Google in a $567.49 billion industry (as of 2022), even if Amazon and Apple cast an ominous shadow, according to Insider Intelligence figures is set to stay on track going forward.
After all, let’s not forget that the implementation of privacy measures like Intelligent Tracking Prevention (ITP) and App Tracking Transparency (ATT) by iPhone makers hinders the advertising strategies of countless companies.
In particular, Meta, Snap, and many smaller app developers and publishers have noticed a distinct drop in revenue since the ITP and ATT came into effect.
And now, as advertisers express a growing appetite for retail media, it’s likely a direct result of changes in wholesale such as the decline in third-party cookies, with Amazon’s Adland (and Apple’s ) is considered by many to be a fait accompli.
General sentiment on stat counters
Figures that Insider Intelligence recently shared with Digiday put the rise of the duo, whose combined market cap was in the $3 trillion range as of December 2022, in some perspective. For example, Amazon’s rise in media rankings in recent years has spawned the term “triopoly.” All Digital Advertising Spend.
This is only the case in the western market, but according to insider figures, Chinese e-commerce giant Alibaba is actually the world’s third-largest advertising company with $41 billion in revenue.
Such stats put Amazon in fourth place on the revenue chart with $37.99 billion in revenue as of 2022. This is a time that just edged out his TikTok owner, his ByteDance, which earned $29.07 billion.
Meanwhile, Apple, with its burgeoning advertising ambitions, remains around the global top 10 with revenue of $7.06 billion.
shift dynamics
In fact, Amazon’s and Apple’s combined ad revenue will account for less than 10% of the $567.49 billion spent on digital media in 2022. change.
Insider projections show that Apple will remain 10th in global media rankings, but by 2024, tracking Madison Avenue executives will be more productive than ever before, so China-based search engine Baidu will catch up to about the same level as Similarly, Insider estimates that Microsoft’s continued forays into retail media and his pursuit of CTV will help him overtake China-based multimedia giant Tencent (see chart below). reference).
Triopoly has arrived in earnest
Arguably the most notable trend over the next two years is Amazon surpassing Alibaba with $55.99 billion in revenue in 2024 (see chart below). Story” Global.
