Google and Meta’s Advertising Dominance Fades as TikTok, Streamers Emerge

By Patience Haggin of The WSJ. Excerpts:

"For the first time in nearly a decade, the two largest players in online advertising are no longer raking in the majority of U.S. digital-ad dollars, a decline that industry insiders expect to continue in years to come.

Google and Facebook parent Meta Platforms Inc. accounted for a combined 48.4% of U.S. digital-ad spending in 2022, according to estimates from research firm Insider Intelligence Inc. Their combined U.S. market share hadn’t been under 50% since 2014, said Insider Intelligence, which expects that number to drop to 44.9% this year.  

The ad businesses of Google and Meta are still growing, but Insider’s data suggest the pace is slower than the rest of the U.S. digital-advertising market. Insider forecasting analyst Zachary Goldner said the erosion of their combined market share was the result of brands having access to more advertising formats."

"Supergut shifted about half of what it spent on Meta to TikTok, a short-form video platform popular with younger audiences." [they are a maker of maker of gut-health products]

"TikTok’s command of the U.S. digital-ad market more than doubled in 2022. Insider Intelligence said, thanks to its nearly 100 million U.S. monthly active users, the virality of the platform and its hold over Gen Z, millennials and influencers."

"One already large digital-advertising player that gained market share in the U.S. last year was Amazon, whose ad business is powered by its ability to target users by their purchase and browsing history. The e-commerce giant accounted for 11.7% of U.S. digital-ad spending last year and is poised to grow to 12.4% in 2023, Insider said."