DANGEROUS DOMINATION: Facebook, Google Collecting 84% of Digital Ad Dollars

PHOTO CREDIT FLICKR

The investment management firm GroupM said Sunday that the dominance of Facebook and Google “is exceedingly bad news for the balance of the digital publisher ecosystem.”

Facebook and Google will capture a phenomenal 84 percent of the digital ad spend worldwide this year as the two online companies account for all of the growth in internet advertising this year, according to GroupM.

The investment management firm said Sunday that the dominance of Facebook and Google “is exceedingly bad news for the balance of the digital publisher ecosystem.” Since the two firms are not only grabbing all the new money advertisers are spending but are also taking share from the competition, GroupM says they will account for “186 percent of digital growth in 2017.”

GroupM’s data strips out China, since media is heavily regulated there and the country is immaterial to both Google and Facebook.

With China, digital advertising will increase overall 11.5 percent this year and will capture 34.1 percent of all spending, while television grows at a mere 0.4 percent, though when state-controlled China is included TV will grow at 3 percent. Worldwide, TV still dominates with 41 percent of ad share.

But in a separate study from Zenith Media also released Sunday, internet advertising has overtaken television on a global basis, accounting for 37.3 percent compared with 34.3 percent. Zenith says that TV peaked in 2012, when it accounted for 39.3 percent of all advertising.


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