Tech
LAST YEAR alone, brands and marketers spent almost $680 billion on digital advertising, or $65 billion more than the year before that. Most of that value was paid to one of the three largest players in the digital advertising landscape: Google, Meta, and Amazon.
According to data presented by Stocklytics.com, Google, Meta, and Amazon generated more than 60% of global digital advertising revenue in 2023.
Amazon’s Revenue Share Doubled in Five Years, Google’s Dropped by 2%
Brands and marketers spend hundreds of billions of dollars on digital advertising each year, and their budgets continue rising. Since 2019, a whopping $3 trillion has been spent on digital ads worldwide, helping the largest players in the market, Google, Facebook, and Amazon, to more than double their revenues. And while Google remains the king of the digital advertising landscape, the tech giant’s revenue share has dropped.
According to Statista and the official Alphabet data, in 2019, Google grossed $134.8 billion from digital ads, making 36% of total market revenue that year. Meta’s $69.6 billion revenue made 19% of the market’s total that year, while Amazon followed with $12.6 billion and a 3.4% share. However, things have changed since then, with Amazon seeing the biggest market share growth.
Statistics show Amazon’s market share in the digital advertising industry practically doubled in the past five years. Last year alone, the tech giant grossed almost $47 billion from digital ads, nearly four times more than in 2029. Its revenue share jumped from 3.4% to 6.9% in this period.
Meta’s market share remained unchanged, making 19% of global digital advertising revenue. Still, last year, the company grossed almost $132 billion from advertising, the highest figure in its history and more than double the figure reported in 2019.
Together, the three tech giants grossed $416.6 billion from advertising in 2023, or almost $200 billion more than they did five years ago.
Amazon to See the Biggest Ad Revenue Growth of 60% by 2027, Twice as Much as Google and 8x more than Facebook
Besides beating Google and Meta in ad revenue growth so far, Amazon is also expected to continue having the strongest growth momentum in the following years.
According to a Statista survey, Amazon’s advertising revenue is expected to jump by an impressive 60% and hit $70.8 billion by 2027. This figure is even more remarkable when compared to Google’s and Meta’s revenue projections. Statistics show Amazon will see twice as much revenue growth as Google and eight times more than Meta in the next four years.
Google’s advertising revenue is forecasted to jump by 35% and hit $340.1 billion by 2027. Meta is far below this figure, with a 7% growth and $127.2 billion ad revenue by 2027.
1st March 2024.
C.E.
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