Google and Facebook now control 20% of global adspend
Google and Facebook together accounted for a fifth of global advertising expenditure across all media in 2016, up from 11% in 2012, according to the new edition of Zenith’s Top Thirty Global Media Owners, published today.
Between them, the so-called duopoly captured 64% of all the growth in global adspend between 2012 and 2016.
Google (under its holding company Alphabet) is the largest media owner in the world by some distance, attracting US$79.4bn in ad revenue in 2016. This is three times more than the second-largest, Facebook, which attracted US$26.9bn.
The largest traditional media owner is Comcast, which takes third place in the ranking with US$12.9bn in ad revenue.
Zenith’s report also reveals that internet advertising overtook television to become the world’s largest advertising medium in 2016 – with digital platforms that are funded by internet advertising dominating the top 30 ranking.
As well as Alphabet and Facebook, there are five other pure-internet media owners in the top 30: Baidu, Microsoft, Yahoo, Verizon and Twitter.
Between them, the seven digital platforms generated US$132.8bn in internet ad revenue in 2016 – 73% of all internet adspend and 24% of global adspend across all media.
Verizon, after acquiring AOL in 2015, took the 21st spot. When it acquires Yahoo later on in the year it will climb to sixth.
The fastest-growing media owner in the list is Twitter, which increased its ad revenue by 734% between 2012 and 2016.
Chinese firm Tencent is second, having grown by 697% over this period, and Facebook is third, with 528% growth.
Two other media owners have more than doubled in size between 2012 and 2016: Baidu (190%) and Sinclair Broadcasting Group (171%).
“The scale of the biggest platforms highlights the importance of building strong partnerships between agencies and media owners,” said Vittorio Bonori, Zenith’s global brand president.
“Brands need to deal with these platforms to communicate with consumers effectively and efficiently, and agencies need to ensure they do so on the best terms available.”