The two companies already account for about three-quarters of the £18.4bn display ad market in the US, and 53 per cent of the £4bn currently spent in the UK.
That growing dominance has put pressure on publishers such as newspapers, most of which have found it difficult to make money from large online audiences as print sales and advertising have fallen rapidly. Google also dominates search advertising, which has largely replaced the classified ads which previously generated significant revenue for newspapers.
According to the report by OC&C Strategy Consultants, Facebook and Google will grow a combined 24 per cent each year to 2020, taking a 71 per cent share of the total ad market worth £4.1bn, more than the total value of display advertising in the UK today.
OC&C partner Fergus Jarvis said publishers had been worried about the impact of Facebook and Google for some time, but the scale of the threat was “quite concerning”. He said: “The scale and speed is really a call to action for media companies. By the time [Facebook and Google] get to 70 per cent of the online ad market, that doesn’t leave a lot of space left elsewhere.”
The ability of Facebook and Google to hoover up money spent on ads is primarily due to people spending more time on smartphones. In the US the two firms have taken 85% of all new digital ad spending, the bulk of which is on mobile devices. “A lot of usage is going in that direction,” said Jarvis. “We are now at a pivot point where the average UK adult is spending more time looking at mobile content than TV. We assume that that trend will continue.”
More like this
Hearst and Rodale Inc. announced that Hearst has agreed to acquire the magazine and book businesses of Rodale.19th Oct 2017 Industry News
Time Out Group announced that it has signed a lease agreement for a new Time Out Market in Boston, Massachusetts, with the benefit of planning for the site already secured.3rd Oct 2017 Industry News
TheExcursionist.com and The Excursionist magazine aim to help customers inspire their next holiday.2nd Oct 2017 Industry News
Samuel Irving “Si” Newhouse, Jr., joined Condé Nast in 1961 after it had been acquired by his father, Samuel I. Newhouse in 1959. He served as chairman of Condé Nast beginning in 1975.2nd Oct 2017 Industry News
Magazines are a shortcut to quality and continues to deliver top results for advertisers, according to Linda Thomas Brooks, CEO at MPA, USA, said during a keynote on the second day of the FIPP World Congress in London (11 October) last week.16th Oct 2017 Features
Digital editions have been around for a long time, going all the way back to the late 90's. But in 2010 when the iPad hit the digital runway, publishers jumped on the tablet bandwagon faster than they could shout, “Hallelujah!”. The struggling publishing industry had found itself a saviour.16th Oct 2017 Opinion
“No other industry predicted its own doom as much as print media. The magazine is not dying, but it may be killing itself.”10th Oct 2017 Features
“Smart repackaging” and "content swarming" are the main ways that Hearst UK’s titles are trying to reach a greater audience - and it’s working, according to Betsy Fast. Betsy, who recently moved from Hearst US to become Executive Director of Digital Editorial Strategy at Hearst UK, shared her insights from the stage on day two of the 41st FIPP World Congress (11 October).13th Oct 2017 Features
Ralph Büchi, Chief Operating Officer (COO) of the Ringier Group and CEO of Ringier Axel Springer Switzerland, has been elected as the new Chairman of FIPP – the network for global media. The chairmanship of the international magazine media association was passed to Büchi after Erwin Fidelis Reisch, president & CEO of Alfons W. Gentner Verlag completed his term as FIPP chairman.11th Oct 2017 FIPP News
Visit our Youtube channelFIND OUT MORE
FIPP newsletters allow you to keep up with industry trends, research, training and events across the worldFIND OUT MORE
Get global coverage of your launches, company news and innovationsFIND OUT MORE
What’s happening now, what’s coming next