Report: Google Now Snares One In Five Of Every Ad Dollars Spent (& It’s One In 10 For Facebook)

Report: Google Now Snares One In Five Of Every Ad Dollars Spent (& It’s One In 10 For Facebook)
SHARE
THIS



A new study has revealed just how much the tech giants Google, Facebook, Amazon, Twitter and Snapchat now snare in ad revenues alone.

The study, titled State Of Digital Media Report, was based on each company’s recent earnings reports and deduced that there’s not one “digital ad market” anymore but rather two media ecosystems – leaders and laggards.

“Google, Facebook, Amazon, Verizon, Microsoft, Twitter and Snap combined have 80 per cent of the market and their market is growing 20 per cent. The laggards have the rest of the market, which will shrink 11 per cent,” the report revealed.

Here are the top highlights from the top five players.

Google

•  $US32.6 billion in advertising revenue in Q4 2018 and a $US130 billion annual run-rate now, growing 20 per cent year over year. This means one in five total advertising dollars globally goes to Google.

• Continued focus on its O&O (owned and operated) business (Search, YouTube, Mail, Maps, Assistant, etc.), citing an increase in margin thanks to “favourablele revenue mix shift from Network to Sites”. O&O makes up 83 per cent of Google’s ad revenue.

* O&O site revenue grew 23 per cent year over year where network revenue grew only 12 per cent. Their margins continue to increase. Volume of ads (measured as paid clicks) on Google properties grew 66 per cent wherthe e volume on the network sites (measured as ad impressions) grew only seven per cent.

Facebook

• With their revenue run-rate at $US68 billion, approximately one in 10 total ad dollars goes to Facebook. It saw a 30 per cent growth rate, which is double that of the digital ad market.

• Seven million advertisers and 90 million small businesses use their services (most of them for free). 50% plan to increase spend on Facebook and 73 per cent plan to increase spend on Instagram.

• 2.7 billion people use Facebook’s services and two billion people use them daily. Users are growing nine per cent  year-over-year. They have 317 million fake or duplicate accounts.

• 83 times is how often the term “Stories” was referenced on their earnings call. “Privacy”, “Safety” and “Security” combined was mentioned 47 times.

Amazon

• $3.4 billion in advertising revenue in Q4 2018 and a $US13.5 billion annual run rate, growing 100 per cent year over year (the total digital market is growing 15 per cent).

• Not much else to report as Amazon is not talking about their ad business. The term advertising does not appear once in their investor presentation and a mere 19 times in their SEC 10-K filing (most of which refers to their own marketing programs versus advertising as a revenue source).

Twitter

• $909 million in revenue last quarter, a 24 per cent year-over-year increase. Video is half of their advertising and the driving force behind revenue growth.

• Doubling down on O&O monetization, they introduced a new metric: monetizable Daily Active Users (mDAU) to get away from chasing scale that is meaningless to advertisers. Their non O&O revenue was down 18 per cent.

* The US market is 21 per cent of their user base but 57 per cent of their revenue, they have a big revenue growth opportunity internationally.

Snapchat

• $US390 million in revenue in Q4 2018 and a 43 per cent growth rate (three times that of the digital market). Annual revenue hitting $US1.2 billion with a high 68 per cent cost of revenue though.

• The promise of cheap ads: “We continue to deliver incredibly competitive CPMs and low cost per outcomes, resulting in highly performant campaigns.”

• With glowing public references to ESPN and NBC, they are clearly trying to cosy up with premium content as a way to balance the “other content” on the platform. Some 30 per cent more people are watching Publisher Stories and Shows daily compared to last year.

Please login with linkedin to comment

Amazon Facebook Google Snapchat Twitter

Latest News

72andSunny Unveils First Campaign For Plant-Based Drink Brand Australia’s Own
  • Advertising
  • Campaigns

72andSunny Unveils First Campaign For Plant-Based Drink Brand Australia’s Own

Freedom Foods and 72andSunny Sydney have launched the first advertising campaign for Australia’s Own range of plant-based beverages. The campaign introduces a new visual world and identity for the brand and captures the healthy, positive feeling you get when spending time in nature and when consuming Australia’s Own certified-organic, plant-based beverages. As well as featuring […]

Are You Paying Too Much In Search Marketing?
  • Partner Content

Are You Paying Too Much In Search Marketing?

Are you paying too much for search marketing? Discover the awful truth here. Or, alternatively, look at the invoice.

Partner Content

by B&T Magazine

B&T Magazine
Nine APAC Finalists In One Club’s Young Guns 19 Competition
  • Advertising

Nine APAC Finalists In One Club’s Young Guns 19 Competition

Nine creatives from APAC are among the 94 finalists from 27 countries in The One Club for Creativity’s prestigious Young Guns 19 competition, celebrating international creative professionals age 30 or younger. The finalists from APAC are: Hiu Ching Kung, graphic designer, Hong Kong Lam Ieong Kun, graphic designer, illustrator, indego design, Macau Raxenne Maniquiz, graphic designer, illustrator, Santa Maria (Philippines) Kiyotaka […]

Adflow’s Regional OOH Coverage Expands By 60%
  • Media

Adflow’s Regional OOH Coverage Expands By 60%

OOH transit company Adflow has announced the success of the first phase of its regional expansion program. Adflow’s regional footprint has increased by 60 per cent to now include 65 regional locations. With 9.1 million people living regionally in Australia (growth of 1.1 per cent experienced in the 19/20 Financial year) and most regional centres […]

Freshworks Starts Trading On Nasdaq, Valued at $13.7 Billion
  • Technology

Freshworks Starts Trading On Nasdaq, Valued at $13.7 Billion

Freshworks, a leading software company, has started trading on the Nasdaq Global Select Market, marking an important milestone for the company. The company priced its IPO at US$36 per share (AU$49.76), raising about US$1 billion (AU$1.4B), resulting in a total market capitalisation of AU$13.7 billion  (US$10B). Freshworks, which was founded in India, has strong roots […]

SLIK Announces Four New Key Hires
  • Marketing
  • Media

SLIK Announces Four New Key Hires

Independent creative agency, SLIK, has made significant changes to its full service creative offering with four hires across management, creative and production.

How Retailers Can Maximise Their Results This Sales Season
  • Marketing
  • Technology

How Retailers Can Maximise Their Results This Sales Season

Black Friday Cyber Monday (BFCM) is the biggest player in the holiday shopping game and Google’s most recent research suggests consumer interest for the peak sales season starts much earlier than retailers may realise. The pandemic has fundamentally changed buyer behaviour over peak sales season, with Google suggesting that global consumer interest in Black Friday […]