Google and Meta are facing some tough competition in the ads industry

Ads, as consumers a lot of us hate them, are annoying little things that pop-up right when we don’t want them to and just make surfing on the internet or watching YouTube videos unbearable with the number of ads put in them. But these ads, however annoying for us, are the backbone of even the biggest of companies.

The famed “Duopoly” is the combined name given to the tech giants of today Google and Meta. For both of these companies, Ads are extremely important as the former is dominant in basic digital advertising, and the latter has gained complete control of specified social media advertising. But their dominance is being targeted by newcomers into the ad market that are in surprising ways looking to bring down some of the leverage that the big companies hold over them.

If we talk specifically about Google, then more and more people are going to TikTok and Amazon to look for products and ideas online, shying away from the usage of the biggest search engine and thus taking away some of the force of Google’s towering dominance.

However, things are also not looking good for Meta in the iOS sector as the new changes in Apple’s tracking policy have made Meta lose a lot of their ability to check and target what the interests of the users are and place ads based upon them. According to Meta, this change is probably going to cost them around $10 billion just this year.

Alongside that both of the tech companies are currently placing their best bets on the growth of digital video; that is Instagram for Meta and YouTube for Google to stay well in the competition that has been going on for years.

Both companies are all set to be responsible for 48.4% of all U.S. digital advertising revenue this year, but this is not the mark of good news. This year it would be the first time since 2014 that Duopoly has generated less than half of the total Digital advertising revenue of the country. As a small comparison, both companies together generated 54.7% of Digital advertising revenue in 2017 just when social media apps like Instagram were beginning to take off.

The main problem for them is Amazon, which is expected to be responsible for 12.7% of U.S. ad revenue by 2024 catching up with Meta at 17.9%.

H/T: Axios.

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by Arooj Ahmed via Digital Information World