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WARC Global Advertising Trends – The Duopoly

WARC, the international marketing intelligence service, has found that of the $590.4bn spent on advertising worldwide last year, $144.6bn (24.5%) went to the Google and Facebook ‘Duopoly’, which equates to almost one in four dollars.

The duopoly’s adspend share is up from 20.3% in 2017 and is more than double the 10.8% recorded in 2014. WARC predicts a further increase to 28.6% ($176.4bn) this year. Looking only at the internet advertising market, the duopoly took over half (56.4%) of ad money in 2018, a share which WARC expects to rise to 61.4% this year. This growth is squeezing other online media owners, as the pool of ad money available to them is now in decline for the first time, down 0.7% to $111.0bn.

James McDonald, Data Editor, WARC, and author of the research, said “One of the main reasons for the duopoly’s success is their creation, and subsequent ownership, of the digital formats perceived to be most effective by adland’s decision makers: paid search and social. Several surveys in the past year have shown search and social to be highly regarded by advertisers in terms of meeting campaign objectives. Google dominates the search engine market, handling almost all mobile searches worldwide and nine in ten on desktops. Meanwhile, ad buyers can target Facebook’s 1.48bn daily users by leveraging a rich cache of personal data. Beyond major brands, the accessibility of the duopoly’s ad buying tools has attracted a long tail of small- and micro-advertisers, creating a competitive advantage which has been core to revenue growth.”

Against this backdrop, WARC’s research on the duopoly highlights three key trends:

WARC Data is available by subscription only. For more information click here [1].