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Amazon & Tiktok

Google & Meta’s ad revenue drops as Amazon & TikTok’s surge

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Google & Meta’s ad revenue drops as Amazon & TikTok’s surge

The ad duopoly of Google and Facebook has long been a dominant force in the digital advertising industry, with the two companies responsible for a large portion of global ad spending. However, there have been signs in recent years that this duopoly may be losing market share to other players, particularly Amazon & TikTok.

Google and Meta’s Dominance in U.S. Digital Ad Revenue to Be Challenged by Amazon & TikTok in Coming Years

Google and Meta are expected to account for 48.4% of all digital ad revenue in the US this year, with Google taking 28.8% and Meta taking 19.6%. This is a decrease from their peak in 2017, when they captured 54.7% of digital ad revenue, with Google taking 34.7% and Meta taking 20%. By 2024, it is predicted that Amazon will capture 12.7% of all digital ad revenue in the US, while Meta will capture 17.9%. TikTok is expected to generate $8.6 billion in ad revenue in 2024, which will make it the fifth largest digital ad publisher in the US, following Google, Meta, Amazon, and Microsoft/LinkedIn.

The shift in market share from Google and Meta to Amazon & TikTok is partly due to the increasing significance of e-commerce. As consumers are increasingly turning to online shopping, businesses are focusing on advertising on platforms that can lead directly to sales. Amazon, with its extensive product range and ability to monitor customer purchases, has become an appealing choice for advertisers. In reality, Amazon’s ad business has seen rapid growth in recent years and is predicted to surpass Google and Facebook in terms of ad revenue by 2023.

TikTok – The most popular kid on the block! 

TikTok has exploded in popularity in recent years, especially among younger users. The social media platform, known for its short-form videos, has become a hub for creativity and entertainment. But it’s not just users who are flocking to TikTok – advertisers are taking notice as well.

One of the main reasons advertisers are turning to TikTok is its ability to reach younger audiences. With a large percentage of its user base being Gen Z and millennial users, TikTok is a prime platform for brands looking to engage with these demographics. In addition, TikTok’s unique format – short-form videos set to music – make it an effective platform for raising brand awareness and engagement.

However, it’s important to note that TikTok does not have the same e-commerce capabilities as Amazon. While Amazon is a giant in the world of online shopping and advertising, TikTok is more focused on building brand awareness and engagement through its content. That being said, TikTok’s rising popularity and ability to reach younger audiences could further erode the dominance of platforms like Google and Facebook in the digital advertising space.

Will Amazon & TikTok Be the Game Changers for advertisers?

It’s worth mentioning that the ad duopoly of Google and Facebook is still very much alive and well, and it will probably take more time for other players like Amazon & TikTok to fully challenge their dominance. However, the shift towards e-commerce and the rise of social media platforms like TikTok suggest that the digital advertising landscape is changing, and it will be interesting to see how these developments unfold in the coming years.

Capitalize with ReBid’s Amazon & TikTok Combo

ReBid’s upcoming integration with Amazon Ads and TikTok Ads enables businesses to streamline their advertising campaigns and manage multiple accounts from a single dashboard, giving a unified view of all campaigns and helping make data-driven decisions. ReBid has integrations not only with Amazon & TikTok but also with Walled Gardens like Facebook, Twitter, and LinkedIn, Search Platforms like Google and Programmatic Platforms like Xandr, MediaMath and more offering businesses a convenient and effective way to reach potential customers and grow their online presence. With ReBid, brands can save 40% on marketing and media resources and increase Returns on Ad spends by over 30%. 

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