Wednesday, June 21, 2017

The Race to Challenge the Google-Facebook Duopoly

Google (#1) and Facebook (#2) collects approximately 50% of global digital advertising spending and no other company comes close to being ranked #3.  Many ad executives believe Amazon has the greatest chance of taking on the duopoly.  Amazon currently provides access to its consumers’ shopping habits to help marketers analyze where best to place their ads.  Snap is another contender as its advantage is its 18- to 34-year-old audience.  Overall, Amazon, Snap and other digital marketing companies have a lot of catching up to do and may need to create new premium content or new technologies that are not mainstream (i.e., Google and Facebook) yet to better compete.

I would think both advertisers and ad agencies are hoping for the emergence of a legitimate #3 player.  Advertisers would like more leverage to negotiate better pricing and ad agencies would want avoid the scenario where they are cut out of the process since Google and Facebook have the resources to deploy entire teams to work with advertisers directly.    

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