Google, Meta and Amazon devour the advertising market

According to the survey by GroupM, the advertising market is centered around GAFA in 2021. Together, Meta, Google and Amazon account for more than 50% of the global advertising market (excluding China, which is not taken into account in the estimates). For comparison, these three players represented “only” 40% of the market in 2019.

Google, Meta, Amazon: 50% of the advertising market, 80% of the digital advertising market

In 2021, digital advertising represents more than 64% of the advertising market, an increase of 4 points in one year and 12 points in two years, which represents $537 billion (excluding authorized political advertising in the United States). Concentrating more than half of the global advertising market, the three players generated $766 billion in 2021.

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Within five years, the three digital giants had doubled their share of advertising revenue. The growth of the total advertising market reached 21% in 2021, after 2020 was severely affected by Covid-19. For digital advertising, digital advertising will end 2021 with a growth of 30.4%. The report’s authors projected 13.5% growth for this sector in 2022.

By way of comparison, television, which is the second most used media for advertising, is showing poor growth. It’s certainly 11.7% in 2021, but it doesn’t make up for the drop in 2020: a 13.7% drop. “The coming years should be empty for television in most of the world’s major markets, as the historical advertisers who have dominated this medium increasingly invest elsewhere.”says the document.

Rise in digital advertising attracts attention of regulators

Last June, the Unified Advertising Market Benchmark (BUMP) stated that the advertising market should break a record this year, as opposed to the historically low numbers for 2020. With its report, GroupM confirms this trend and insists on the rise of digital advertising in small structures: For example, small businesses and online-only businesses are likely to dedicate 100% of their budgets to digital advertising.. He also adds that if China were included in these estimates, the number would undoubtedly be higher, as the share of digital advertising is high there.

As for Amazon, the company recorded an 87% increase in advertising activity in the second quarter in line with its strategy. In general, in France, the digital advertising market is also experiencing a rise in the first half of 2021.

In the United States, a US senator called for an investigation against Google, accusing it of manipulating the advertising market. In Europe, a future European regulation, the Digital Markets Act, plans to set new rules regarding targeted advertising. These actions should target large groups, including Amazon, Google, and Meta.

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