Advertising Firms Suffer As Google, Facebook Dominate Global Ad Revenue Charts

Aug. 13, 2018

According to a report in The New York Times on Sunday, venture capital money going into ad-tech start-ups is falling sharply.“Online advertising companies have struggled for several years as Google and Facebook solidified their grip on digital dollars, slowing revenue for the others,”added the report, citing global marketing research firms including LUMA Partners.

While spending for online ads was more than $88 billion last year, over 90 per cent of that went 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,”said the report. The company generated $2.2 billion in revenue from its advertising business in the second quarter this year.

The move signifies a shift in the way consumer shopping habits continue to change as they are headed toward Amazon and retail websites for shopping and toward Google and Bing for answers to 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.