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September 23, 2013

Google, Facebook Commandeering Large Share of Digital Advertising

Image courtesy of (Stuart Miles)/

Google and Facebook are dominating online advertising in the United States, leaving all other marketers fighting for scraps, according to the Interactive Advertising Bureau.

Advertising in the U.S. hit $36.6 billion in 2012, and the majority of the funds were gobbled up by the two technology giants.

“If you exclude Google and Facebook,” Pivotal Research analyst Brian Wieser told the New York Post. “There’s almost no growth. It’s Google uber alles, they’re taking all the share and Yahoo and AOL have been sucking wind.”

For instance, of the $19 billion spent on search each year — search being the largest area of online advertising — Google enjoys a whopping 95 percent share.

In the past decade, Google ad revenue has gone from $1.42 billion to $43.7 billion last year while Facebook went from zero dollars to $2.2 billion in display ad revenue in 2012.

If Facebook’s and Google’s search, display and traffic acquisition costs (TAC) were removed from the equation, Web advertising would sit at only $12.4 billion, an annual growth rate of just one percent.