Amazon’s advertising business grew 19%, unlike Google, Meta

Pascal Rossignol | Reuters

Amazon’s advertising business continues to grow despite a general slowdown in digital advertising, which has hurt companies like Google parent Alphabet, Facebook parent Meta and Snap.

The online retail giant’s advertising services unit brought in $11.6 billion in sales for the fourth quarter, representing a 19% year-over-year increase, according to its earnings report Thursday.

Although Amazon’s advertising unit still constitutes a small fraction of the $149.2 billion in revenue the company recorded in its fourth quarter, it represents a fast-growing area that analysts believe could be a crucial player in the digital advertising market.

Indeed, while investors were pleased that Meta is cutting costs, sales in the company’s fourth quarter dropped 4% year over year to $32.17 billion.

Meta executives explained on Wednesday during a call with analysts that they don’t see an immediate rebound in the digital advertising market coming anytime soon. Susan Li, the

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Meta and Alphabet lose dominance over US digital ads market

Meta and Alphabet have lost their dominance over the digital advertising market they have ruled for years, as the duopoly is hit by fast-growing competition from rivals Amazon, TikTok, Microsoft and Apple.

The share of US ad revenues held by Facebook’s parent Meta and Google owner Alphabet is projected to fall by 2.5 percentage points to 48.4 per cent this year, the first time the two groups will not hold a majority share of the market since 2014, according to research group Insider Intelligence.

This will mark the fifth consecutive annual decline for the duopoly, whose share of the market has fallen from a peak of 54.7 per cent in 2017 and is forecast to decline to 43.9 per cent by 2024. Worldwide, Meta and Alphabet’s share declined 1 percentage point to 49.5 per cent this year.

Jerry Dischler, head of ads at Google, told the Financial Times that fierce

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Google and Meta are losing their edge as TikTok, Amazon, Instacart ads grow

2022 marked the first year since 2014 that Google and Meta’s advertising market share dropped below 50%, standing at 48.4%. By the end of 2023, that number is expected to drop to 44.9%.

What’s going on. Amazon, ByteDance’s TikTok and streaming services like Netflix are continuing to increase their foothold. People are spending less time online on sites like Google and Meta, so it’s no surprise that they’re facing hurdles, despite still growing (albeit slower than other digital ad platforms).

Meta and other platforms also suffered from Apple’s iOS14 update in 2021, which required apps on its devices to ask users if they wanted to be tracked. The majority of iPhone users opted not to be. Google was not affected by this update, as it relies on customer intent, revealed by a user’s search terms.

The TikTok effect. Marketers want more options, and TikTok is it. TikTok’s hold on the

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Meta and Alphabet Are Losing Their Advertising Throne

Meta and Alphabet Lose The Advertising Throne

It seems that the long-held duopoly ruling the $300 billion advertising market is coming to an end as tech giants are fighting for their piece of the pie. Meta Platform Inc (NASDAQ: META) and Alphabet Inc (NASDAQ: GOOG) are losing their dominance to Amazon.com Inc (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT) and Apple Inc (NASDAQ: AAPL).

Figures

According to Insider Intelligence, this will be the first year since 2014 that these two corporations won’t hold the majority share of the market as their share of revenues are expected to drop to 48.4 percent in what will be their fifth annual decline.

An extremely dynamic market

Jerry Dischler, head of ads at Google, spoke to the Financial Times about a fierce rivalry from new entrants, along with antitrust scrutiny owed to the U.S. and European regulators.

Google is being pursued for allegedly promoting its

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