Janice R. Andrews
The year 2024 has brought about a revival in the constantly changing field of digital advertising that appears to be benefiting the industry heavyweights. Even if the ad business is seeing a strong resurgence, the big players—like Google and Meta—are largely benefiting from it, leaving smaller competitors and legacy media fighting for scraps of the pie.
Insider Intelligence predicts that Google and Meta will take home more than $140 billion this year alone, solidifying their leadership in the digital marketing space. It is anticipated that this duopoly will control about half of all digital ad income once more, which is a startling indication of their continued dominance. These massive companies are the ones that stand to gain the most from brands coming out of a protracted ad slump, while others will have to compete with their very powerful rivals for attention.
The recent results of businesses such as Snap highlight Wall Street’s intolerant attitude, where any growth that falls short of Zuckerbergian proportions is looked down upon. Investors felt that Meta’s 24% rise in ad income was insufficient, while Google’s very modest 11% growth was still considered inadequate. This discrepancy emphasizes the harsh truth that, in the view of shareholders, not all IT businesses are created equal, with only the biggest and bravest gaining their unwavering support.
However, Google and Meta aren’t the only companies controlling the market. Even though it is now ranked third in the digital advertisements industry, Amazon’s ads business has grown by an astounding 27% in only a single year. It is impossible to overestimate Amazon’s ability to further disrupt the industry given its intentions to turn its Prime Video streaming service into a dominant ad platform. The saying “watch it on Amazon, then buy it on Amazon” refers to the company’s integrated advertising ecosystem, which has unmatched reach and power.
The trend of digital ad expenditure, which is set to expand by 13.2% this year and dwarf the measly 2.4% growth predicted for conventional media advertising, says volumes about the changing tastes of advertisers. While conventional media sources find it difficult to keep up with the changing times, this massive move towards digital platforms serves to further cement Big Tech’s domination.
Platform economics is also being used by social media phenomena like TikTok and retail giants like Walmart, which use their extensive online networks to draw in both advertising and customers. As time goes on, the internet giants’ lead over their rivals grows, thanks to their constant innovation and investment in state-of-the-art AI capabilities that strengthen their grip on the attention economy.
Despite their illustrious histories, even the titans of entertainment, Disney and Fox, are struggling to keep up with the rapid pace of advancement. Disney’s linear networks business saw a sharp downturn, highlighting the difficulties conventional media confront in a world going more and more digital. Fox’s ad income also fell by 20% in the most recent quarter, underscoring the existential danger that the revival of digital ads poses.
The future seems bleak for those who lack the vision and agility to succeed in this new advertising landscape as other media giants get ready to release their earnings reports. If industry titans like Bob Iger didn’t possess the streaming expertise and deal-making skills, these corporations may end up as simple participants in the race for digital dominance.
In 2024, the rise of digital advertising has served to further solidify Big Tech’s hegemony, with Google, Meta, and Amazon at the forefront. The need for creativity and adaptation is more important than ever as conventional media finds it difficult to stay up with the changing media landscape. In a world where attention is the most valuable resource, success will go to those who have the foresight and means to capture the digital zeitgeist.
