This post is by Aran Ali from Visual Capitalist


Big techs growing advertising revenue market share

The Briefing

  • Collectively, Amazon, Facebook, and Google make over $112 billion in advertising revenues
  • Two-thirds of ads in the U.S. are now digital

3 Companies Now Make Up 50% of U.S. Ad Revenues

Every year in the U.S., CFOs and marketing executives gather to allocate a portion of company funds towards advertising budgets. Today, on average, over half of those U.S. ad dollars end up in the deep pockets of just three tech stocks—Amazon, Google, and Facebook.

The advertising landscape is changing beyond recognition. Today’s data takes a closer look at annual U.S. advertising dollars, where Big Tech stocks continue to grow their presence.

The Ad Dollars in 2020

The U.S. is home to some of the biggest advertising spenders in the world. Despite a decline due to the COVID-19 pandemic, U.S. advertising spend was worth just over $225 billion in 2020.

The Big Tech ad triopoly made roughly $120 billion of this, and are taking up more market share with every year. One reason for this is the industry’s move towards digital ads, which now make up almost two-thirds of all ad spending.

An Unlikely Competitor

Big Tech stocks like Google and Facebook are well known pure plays on the advertising space. However, Amazon’s inclusion may come as a surprise. Typically known for their ecommerce business, Amazon now also makes over $16 billion in ad revenue each year.

But it wasn’t always like this. Prior to 2015, the digital ad space was a duopoly consisting of just Facebook (Read more…)