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

Bank Of Queensland Drops OMD, Hands Media To Initiative & Performics
  • Media

Bank Of Queensland Drops OMD, Hands Media To Initiative & Performics

Bank of Queensland Group has announced that following an extensive review of their existing media agency roster, the Group will split media across two agencies, being Performics and Initiative. As part of the acquisition of ME Bank by the BOQ Group in 2021, the marketing teams from across the Group were consolidated into one central […]

Why A Federal Election Is A Treasure Trove Of Data For Strategists & Marketers
  • Opinion

Why A Federal Election Is A Treasure Trove Of Data For Strategists & Marketers

Luisa Dalli (lead image) is a senior strategist at Havas Media Group. In this guest post, Dalli says Australia didn’t merely  elect the Albanese government but it also shone a bright light on where we are and what we want as a nation… It’s been two months since Australia’s federal election, yet the underling feeling […]

Opinion

by B&T Magazine

B&T Magazine
OLYMPUS DIGITAL CAMERA
  • Advertising
  • Opinion

Why Trust, Not Crypto, Is Today’s Most Valuable Online Currency

In uncertain times, trusted sources become even more significant in the world of media. Elise Bennett (pictured), head of account management (APAC) at Outbrain, reveals what advertisers need to know about the new trust exchange. Instability breeds uncertainty. From bushfires to the pandemic and war, there’s been plenty of both to go around in recent […]

Nine’s Radio Stations Bag Best Ever Survey 4 Results
  • Media

Nine’s Radio Stations Bag Best Ever Survey 4 Results

GfK Survey 4 of 2022 reveals that Nine’s talk stations achieved a cumulative audience of 1.873 million – up 9.1 per cent on Survey 4 of 2021. It’s the highest ever Survey 4 audience for the network, and comes off the back of record audiences in Surveys 1, 2 and 3. Sydney’s 2GB is a […]

Optimising Commits To Environmental Support As Part Of 1% For The Planet Movement
  • Marketing

Optimising Commits To Environmental Support As Part Of 1% For The Planet Movement

Independent SEO agency Optimising has further reinforced its commitment to the environment by being part of 1% for the Planet, on the back of it gaining B Corp Certification last year. Optimising continues to walk the walk around environment sustainability by being part of the global movement, which inspires businesses and individuals to support environmental […]

Get Your Entries In For Best Of The Best Now!
  • Advertising
  • Marketing
  • Media
  • Technology

Get Your Entries In For Best Of The Best Now!

A tidy desk and punctuality aren't enough to win a Best of the Best Award. Not, that we do stress, they'd hurt either.

by B&T Magazine

B&T Magazine
Comms Staff Encouraged To Take Survey Into Cultural Diversity, Inclusion & Representation
  • Media

Comms Staff Encouraged To Take Survey Into Cultural Diversity, Inclusion & Representation

Media and communications staff at all levels are invited to take part in a national online survey examining perceptions and practices around cultural diversity, inclusion, and representation in the industry. The FAIR survey, now in its second year, provides a snapshot of cultural diversity in the communications industry, as well as how practitioners incorporate diverse […]

PubMatic Partners With AlikeAudience To Offer Media Buyers Exclusive Sell-side Access To Transactional Data
  • Media

PubMatic Partners With AlikeAudience To Offer Media Buyers Exclusive Sell-side Access To Transactional Data

PubMatic has announced a partnership with AlikeAudience in Australia, Japan, and Indonesia, enabling advertisers to access quality audience data on the supply side. Activating data on the supply side cuts down complexity and delivers more efficiency and value for both media buyers and data owners, through higher match rates and better CPMs. The partnership expands […]

BARCELONA, SPAIN - NOVEMBER 27: Barcelona supporters during the UEFA Champions League group F match between FC Barcelona and Borussia Dortmund at Camp Nou on November 27, 2019 in Barcelona, Spain. (Photo by Eric Alonso/MB Media/Getty Images)
  • Media

Optus Sport Becomes Official Aussie Broadcaster Of Spanish LaLiga

Live streaming service Optus Sport will be showing all major games of the Spanish La Liga Santander and the LaLiga SmartBank, giving football fans an extra reason to become subscribers. The Spanish Football League is considered one of the greatest in the world, containing the likes of European champions Real Madrid, Catalan giants FC Barcelona, […]

TVNZ+ Launches With A Warning About The Perils Of Free Streaming Via Dentsu Creative
  • Campaigns

TVNZ+ Launches With A Warning About The Perils Of Free Streaming Via Dentsu Creative

In the recently launched campaign for TVNZ+, Dentsu Creative, and Sweetshop’s Damien Shatford, have delivered an entertaining look at the new streaming brand, TVNZ+. TVNZ launched the reimagined streaming brand last week to better reflect its digital offering, repositioning the platform as a streaming destination rather than an OnDemand catch-up service.

Nikki Van Dijk And Surfing Australia Team Up With Ruffie Rustic Foods To Promote Plant-Based Meals
  • Campaigns

Nikki Van Dijk And Surfing Australia Team Up With Ruffie Rustic Foods To Promote Plant-Based Meals

Ruffie Rustic Foods have teamed up with Nikki Van Dijk and Surfing Australia to encourage groms to be kind to their bodies and minds through providing nutritious, plant-based meal options. Ruffie Rustic Foods are on a mission to prove that plant-based eating can be easy and convenient, without compromising on flavour. Whether you’re vegetarian, flexitarian, […]

Nestlé Australia Launches First Nations Creative Program Tuck In!
  • Campaigns

Nestlé Australia Launches First Nations Creative Program Tuck In!

Nestlé Australia today launched Tuck In!, a program supporting emerging First Nations creatives to establish career pathways in commercial content creation. Tuck In! invited First Nations chefs and aspiring content creators to develop recipe and video content celebrating the combination of bush foods and Nestlé products. Nestlé Oceania marketing & communications director Anneliese Douglass said […]

British Army’s YouTube And Twitter Accounts Get Hacked By Crypto Scammers
  • Technology

British Army’s YouTube And Twitter Accounts Get Hacked By Crypto Scammers

The UK Ministry of Defence confirmed that the British Army’s Twitter and YouTube accounts had been compromised by hackers who used them to promote their non-fungible token (NFT) products. The two accounts have since returned to normal, as the Ministry said via their own Twitter page. “The breach of the army’s Twitter and YouTube accounts […]