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Challengers claw ad revenue from Google, Facebook

Google and Facebook have been racing towards total dominance of global ad revenues, but a recent report from eMarketer suggests smaller players may yet reel them back in.

Ceding market share

After years of unabated ascendancy, the two biggest players in digital ad distribution are facing stiff competition.

The combined market share of Facebook and Google is set to be smaller in 2018 than it was in 2017. According to eMarketer, they captured 58.5% of ad investment last year, and are projected to get 56.8% this year.

Big small players

The main reasons eMarketer suggests for the decline of the duopoly:  Snapchat and Amazon. Both are growing faster than previously expected, and both are successfully monetising.

Of course, they’re hardly up-and-coming tech hopefuls. While Facebook and Google do have a scale advantage, the challengers are already global household names.

Race not yet run

Neither Google nor Facebook are in financial straits just yet. Overall, the digital ad market is still growing, so both are still set for larger ad revenues year-on-year, despite smaller market share.

Rather, the ceding of market share is a signal of change. Momentum is shifting, and it’s no longer at the back of Facebook and Google.

Splitting market shares might be good for competition, but could it also make for inconvenience as it splits targeting strategies?

Copy Transmission is a Melbourne-based agency :: Better Brands. Loud & Clear.

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