james rogers
Amazon and TikTok get more digital ad spend, according to Insider Intelligence.
Alphabet Inc.’s Google and Meta Platforms Inc.’s Facebook have traditionally dominated digital advertising, but they are facing challenges from Amazon.com, TikTok and streaming services, according to a new report. survey revealed.
Alphabet’s (GOOGL) (GOOGL), Google, Meta (META), Facebook and their respective subsidiaries will collectively account for 48.4% of U.S. digital ad spend in 2022, according to Insider Intelligence estimates. This is the first time since 2014 that total market share has fallen below 50%, reports The Wall Street Journal. Insider Intelligence predicts that the combined market share of the two companies will fall to 44.9% in 2023 and 43.9% in 2024.
MarketWatch reached out to Google and Meta for comment on this story.
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Google and Facebook’s advertising businesses are still growing, but at a slower pace than the rest of the U.S. digital advertising market, according to Insider Intelligence data.
But e-commerce giant Amazon (AMZN) is gaining market share. According to insider intelligence, Amazon said he could account for 11.4% of U.S. digital ad spending in 2022, rising to 11.7% in 2023 and 12.6% in 2024.
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Even in an uncertain macro environment, Amazon’s advertising business is cited by analysts as one of the company’s key strengths. Amazon shares fell 0.2% on Wednesday.
TikTok’s share of digital ad spend is still relatively small, estimated to be 2% of digital ad spend by 2022, according to insider intelligence. TikTok’s share he is projected to reach 2.8% by 2024.
The e-commerce space is evolving rapidly as businesses adapt to new consumer trends. For example, Amazon has reportedly launched his TikTok-style feed of customized videos and photos, which e-commerce experts cite as a smart move.
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With the rise of TikTok, owned by Chinese company ByteDance Inc., companies like Amazon, Meta and Alphabet are stepping up their short-form video efforts.
Alphabet’s shares fell 0.8% on Wednesday, while Meta shares rose 2.6%, beating the S&P 500 Index’s 0.7% gain.
-James Rogers
(Closed) Dow Jones Newswire
01-04-23 1223ET
Copyright (c) 2023 Dow Jones & Company, Inc.
