More than half of the global advertising market is in
Software

More than half of the global advertising market is in the hands of five tech giants

According to analysts at GroupM, the top five tech companies own more than half of the global advertising market. Shared by Google, Meta* Platforms, Alibaba, ByteDance, and Amazon account for 53% of the global market, up from 46% last year.

    Image Credit: David Paul Morris / Bloomberg

Image Credit: David Paul Morris / Bloomberg

It also notes that the top 25 advertisers currently account for 74% of global adspend. A year earlier it was 68%, in 2016 it was 43%. At the same time, ten years ago, the top 5 advertisers were mostly American media companies: Google, ViacomCBS, News Corp., Comcast and Disney. At the same time, they only occupied 20% of the global advertising market at the time.

Analysts believe that some macroeconomic factors, such as inflation and wage growth, are complicating the task new entrants in the advertising market are trying to solve in order to break into this segment. Chinese companies continue to gain market share in the advertising market, but mostly focus on the domestic market. The most notable exception is TikTok, which is owned by ByteDance.

    Image source: GroupM

Image source: GroupM

Although digital technologies have made the advertising market more accessible for a variety of companies, they have also helped the largest IT giants to significantly increase their presence in this segment. The global market is expected to grow by 8.4% this year (excluding US political advertising), slightly below analysts’ initial forecasts for 2022.

* It is included in the list of public associations and religious organizations for which the court made a final decision, activities on the grounds of Federal Law No. 114-FZ of July 25, 2002 “On Combating Extremist Activity”.

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About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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