New players emerge to challenge Facebook and Google duopoly
TBR estimates Facebook and Google will capture approximately 55% of the $200 billion in digital ad spend in 2017. By leveraging a combination of global subscribers, engagement data and advertising technology (ad tech) to support ad buying and selling, both companies will command significant market share. At a high level, Facebook capitalizes on ad opportunities via communication gateways and Google via queries (i.e., search), its DoubleClick suite and YouTube. Google’s ad business has a significant head start over Facebook’s; however, TBR anticipates the social media giant will only become more formidable in 2018 and beyond as Facebook builds its advertising business around its two globally distributed messenger platforms. That said, two media technology vendors will emerge to challenge the Facebook-Google duopoly. Verizon is integrating AOL and Yahoo assets into Oath, which will combine numerous popular media properties plus a stack of complementary ad tech platforms. Meanwhile, e-commerce heavyweight Amazon is ramping up its Amazon Advertising Platform and Amazon Publisher Services, adding value to the high-growth programmatic advertising segment via consumer shopping data.