Google, Amazon, Meta and Apple will control 70% of the online advertising market outside of China by the end of 2021, a report Omdia shows.
Google, Amazon, Meta and Apple outperformed the overall global advertising market in 2020, posting combined growth of 17% against a -1% drop in total global media net advertising revenue, according to the report.
This market outperformance continued into 2021 and drives GAMA’s share of total global media net advertising revenue as media owners up from 33% in 2020 and expected to reach 39% by 2020. by the end of 2021.
Google outperformed the overall advertising market in 2021. Marija Masalskis, Senior Principal Analyst at Omdia, commented: “Based on Google’s results for the first three quarters of 2021, we expect the business to grow 40%, 6% over the whole year. strongest full-year growth since 2007.”
Google, Amazon, Meta and Apple’s share of total media net advertising revenue increases to 45% in 2021, and its share in the online segment increases to 65%. This means that only 35% of global online ad revenue generated by media owners was untouched by Google, Amazon, Meta or Apple in 2021.
China, the world’s second largest advertising market, has banned the digital advertising operations of Google, Amazon, Meta and Apple.
Their share of total net media ad revenue in 2021 is 46%, while their share of online ad revenue is 70% in the same year – or 81% if you include all revenue. online advertising passing through their platforms.
Google remains the undisputed leader in online paid search advertising, earning 73% of total global revenue outside of China in 2021.
Amazon is an increasingly powerful force in this segment as more consumers turn to its platform for initial product searches, and it will eat away at Google’s share until 2025, when it will. will take 16% of paid search ad revenue outside of China.
Amazon’s sponsored product ads and growing presence in the ad-supported video-on-demand (AVOD) space will also see it grow its share of the online display segment to 8% in 2025. as e-commerce continues to grow across the globe. However, this segment will continue to be dominated by Meta and its constituent social properties until 2025, when they will collectively take 41% of online display revenue.
Although Meta also dominates the out-stream – or in-feed – video advertising segment, it will see increased competition in this space from other social video sharing platforms, such as ByteDance’s TikTok.
Google also enjoys a strong position as a media owner in the online display segment through YouTube, which accounted for 36% of global TV-like streaming video advertising revenue in 2021, and its growing stability in other display ad-supported services, such as Gmail and the Google Discover feed.
Apple’s advertising revenue represents 0.4% of the company’s revenue in 2020. Apple has a disproportionate influence in the mobile advertising segment, which accounted for 71% of total online advertising revenue in 2021.
Apple has made privacy central to the marketing discourse of its devices and services over the past few years, and 2021 has seen it make changes to its mobile operating system that bolster privacy options and make tracking and targeting advertisements on different applications much more difficult, impacting the social platform and the advertising revenue of mobile publishers.