This article is about how Google and Facebook attracted one-fifth of global advertising spending last year, nearly double the figure of five years ago, research shows. Online advertising has overtaken television to become the world’s largest ad medium, according to data and analysis agency Zenith. In addition, Internet-only media companies are grabbing the biggest slices of the online advertising market, while traditional news publishers have fallen far behind and been forced to make cutbacks. This could also lead to the reason of which why some traditional news publishers have started to leave the traditional platform and start to make themselves online such as the Daily Mirror. Despite its large share of the ad market, Google faces a growing boycott from major advertisers including the UK government, Marks & Spencer and McDonald’s, and has promised an overhaul of its advertising policies. Many of the companies involved in the boycott discovered their advertising spend was being used to place banner ads over YouTube videos from groups such as Britain First, indirectly funding extremists.
- Together, the two companies accounted for nearly 20% of global advertising spending last year, up from 16.3% in 2015 and 10.6% in 2012. The largest traditional media owner is US broadcasting and cable television company Comcast, which was third with $12.9bn in ad revenues in 2016, up from $11.5bn the year before.
- Google, owned by parent company Alphabet, is by far the biggest media owner in the world and attracted $79.4bn (£61.5bn) in ad revenues in 2016, three times more than the second-largest, Facebook, which pulled in $26.9bn, according to Zenith. The previous year, Alphabet took $67.4bn of ad revenues and Facebook $17.1bn.
- Twitter is the fastest-growing media owner, increasing ad revenue by 734% between 2012 and 2016.
- Baidu, Microsoft, Yahoo, Verizon and Twitter. Between them, the seven digital platforms generated $132.8bn of internet ad revenues in 2016, accounting for nearly three-quarters of all internet ad spend, and nearly one-quarter of total ad spending.
In my opinion, I believe that this is the great advantage as to which the online platform have over the traditional media platform (newspapers vs online). Since the majority of newspaper audiences have moved towards the online world, online companies have been thriving on the online ads. This is because businessmen know that online marketing is the best way in which someone can get their word around the public. For example, since everyone uses Google as their main search engine, many businesses would use them as a way of online advertising because they would know that many people will be able to see this advert and this is a stand out fact which online advertising has over the traditional advertising.
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