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Facebook, Google's digital advertising dominance crushing ad firms: Report

The number of independent and smaller ad tech companies has fallen 21 per cent since 2013 to 185 in the second quarter of 2018

Topics
World Wide Web  |  Internet  |  Google

IANS  |  New York 

Facebook, Google

The dominance of and of digital has led to the number of independent and smaller ad tech companies falling 21 per cent since 2013 to 185 in the second quarter of 2018, the media reported.

According to a report in The New York Times on Sunday, venture capital money going into ad-tech start-ups is falling sharply.

"companies have struggled for several years as and solidified their grip on digital dollars, slowing revenue for the others," added the report, citing global marketing research firms including LUMA Partners.

While spending for was more than $88 billion last year, over 90 per cent of that went to or

"is also making inroads into advertising, with a new arm, raising the possibility that it will become a top competitor," said the report.

The company generated $2.2 billion in revenue from its advertising business in the second quarter this year.

While Facebook had been predicting its ad revenue to decelerate in 2017, it actually saw a strong growth of 48.8 per cent.

According to a recent report, brands will invest 55 per cent more in digital marketing by 2023.

"such as Google will lose some of their appeal for shopping as and other retail websites gain favour and advertiser dollars over the next few years," said

The move signifies a shift in the way consumer shopping habits continue to change as they are headed toward and retail websites for shopping and toward Google and Bing for answers to questions.

"The shift gives Amazon a reason to strengthen its search features -- text and voice -- for organic traffic, as well as its search advertising platform," said the report.

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First Published: Mon, August 13 2018. 11:46 IST
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