Report: Facebook & Google Utterly Dominate The US Digital Ad Industry

Mark Zuckerberg, chief executive officer of Facebook Inc., listens as Narendra Modi, India's prime minister, not pictured, speaks during a town hall meeting at Facebook headquarters in Menlo Park, California, U.S., on Sunday, Sept. 27, 2015. Prime Minister Modi plans on connecting 600,000 villages across India using fiber optic cable as part of his
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In what won’t be a surprise to anybody, a new study has found that Google and Facebook accounted for an astonishing 99 per cent of revenue growth from digital advertising in the US in 2016.

The study by the IAB in the US found that the two tech behemoths captured a combined 77 per cent of gross spending in 2016, up from from 72 per cent in 2015. Facebook specifically accounted for 77 per cent of the digital ad industry’s overall growth.

According to the report, the overall US internet ad industry grew 21.8 per cent from $US59.6 billion to $US72.5 billion in 2016.

Commenting on the report, Pivotal Research senior analyst Brian Wieser told Business Insider that the study showed “the degree to which Google and Facebook dominate the industry presently.”

“The big point is that if Google and Facebook are the primary interfaces to buyers, over the long-run they own the relationships and the related data,” Wieser said. “Every partner they work with is subservient.”

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