{"id":28225,"date":"2023-01-06T15:51:30","date_gmt":"2023-01-06T15:51:30","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2023\/01\/06\/google-and-meta-are-losing-their-edge-as-tiktok-amazon-instacart-ads-grow\/"},"modified":"2023-01-06T15:51:30","modified_gmt":"2023-01-06T15:51:30","slug":"google-and-meta-are-losing-their-edge-as-tiktok-amazon-instacart-ads-grow","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2023\/01\/06\/google-and-meta-are-losing-their-edge-as-tiktok-amazon-instacart-ads-grow\/","title":{"rendered":"Google and Meta are losing their edge as TikTok, Amazon, Instacart ads grow"},"content":{"rendered":"

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2022 marked the first year since 2014 that Google and Meta\u2019s advertising market share dropped below 50%, standing at 48.4%. By the end of 2023, that number is expected to drop to 44.9%. <\/p>\n

What\u2019s going on. <\/strong>Amazon, ByteDance\u2019s TikTok and streaming services like Netflix are continuing to increase their foothold. People are spending less time online on sites like Google and Meta, so it\u2019s no surprise that they\u2019re facing hurdles, despite still growing (albeit slower than other digital ad platforms). <\/p>\n

Meta and other platforms also suffered from Apple\u2019s iOS14 update in 2021, which required apps on its devices to ask users if they wanted to be tracked. The majority of iPhone users opted not to be. Google was not affected by this update, as it relies on customer intent, revealed by a user\u2019s search terms.<\/p>\n

The TikTok effect. <\/strong>Marketers want more options, and TikTok is it. TikTok\u2019s hold on the digital ad market more than doubled in 2022, while Amazon gained market share due to its ad business being able to target users by their purchases and browsing history.\u00a0<\/p>\n

The Washington Post reported that \u201cSupergut Chief Executive Marc Washington said the maker of gut-health products used to spend about 80% of its ad budget on Meta\u2019s Facebook and Instagram platforms, with the rest going to Google. In early 2022, he noticed that the cost of bringing in new customers through advertising on Meta\u2019s platforms was twice as high as it was before Apple\u2019s privacy changes. Supergut shifted about half of what it spent on Meta to TikTok, a short-form video platform popular with younger audiences.\u201d<\/p>\n

Insider Intelligence said that TikTok\u2019s command of the digital ad market more than doubled in 2022 and has nearly 100 million U.S. monthly active users. However, its overall share remained small, at just 2% of U.S. digital ad spending.<\/p>\n

Amazon continues to grow. <\/strong>Amazon accounted for 11.7% of U.S. digital-ad spending last year and is poised to grow to 12.4% in 2023, Insider said.<\/p>\n

\u201cOur advertising is at the point where consumers are ready to spend,\u201d Amazon Chief Financial Officer Brian Olsavsky said on the company\u2019s October conference call.<\/p>\n

Other retailers have followed in Amazon\u2019s footsteps by building digital-ad businesses based on their consumer data, known as retail media networks. Combined, Walmart Inc.<\/a>, eBay Inc., Etsy Inc. and Instacart<\/a> took in about 1.4% of digital-ad dollars spent in the U.S. last year, according to Insider.<\/p>\n

Microsoft & Netflix.<\/strong> We can\u2019t talk about Netflix without talking about Microsoft. Last year they announced a partnership<\/a> to bring an ad-supported subscription plan to Netflix. Vincent L\u00e9tang, executive vice president of global market research at Magna, a media- investment firm that is part of Interpublic Group of Cos.\u2018 Mediabrands, called Netflix and Disney\u2019s entry into the market \u201ca game-changing moment\u201d for ad-supported streaming. \u201cThey bring a potentially huge number of viewers,\u201d he said, and a wealth of premium video content.<\/p>\n

Why we care. <\/strong>Advertisers should be aware of emerging platforms, just as they should be aware of those experiencing a decline. Though most tend to predict these types of trends long before the numbers get published. But reports like this help solidify what many advertisers already know; diversification is key. <\/p>\n\n

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