The size of the US Internet advertising market, Google, Facebook, and Amazon have together

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According to data from eMarketer, the size of the market rose from US$42.8 billion in 2013 to US$107.4 billion in 2018. In addition, the Los Angeles Times cited an e-commerce research report saying that by the end of 2019, the scale of digital advertising by U.S. companies is expected to reach 130 billion U.S. dollars. Compared with about 110 billion U.S. dollars for traditional advertising, its market share has exceeded 50%.

This market currently shows a serious oligopoly pattern. In the aforementioned 2018 data, Google, Facebook, and Amazon have together accounted for 61.9% of the total U.S. online advertising market share.

According to Facebook’s financial report, its overall advertising revenue in 2019 was US$69.655 billion, of which Instagram contributed nearly US$20 billion. According to the 2019 financial report of Google’s parent company Alphabet, its total annual advertising revenue (website revenue and online revenue) was US$141.8 billion, of which YouTube advertising revenue was US$15.15 billion.

Even with such a leading position, Facebook is not so careless in advertising. From 2017 to 2019, Facebook’s advertising business accounted for 98.25%, 98.52%, and 98.53% of total revenue, respectively.

Such a high share means that Facebook is a pure advertising company at the commercial level. If this core business is threatened, it is equivalent to finding an ant colony in the base of its business empire. Therefore, even if TikTok’s small goal of $500 million does not seem worth mentioning, Facebook will spare no effort to provoke it.

The problem now lies in two directions. If TikTok is acquired by Microsoft, can it maintain its existing advantages and continue to grow, and finally become a product that can compete with Facebook and Google? And what if the actual situation is getting worse?

Prior to this, there were also discussions about the possibility of TikTok being sold to Google or even to Facebook.

Like Microsoft, these two have the ability to acquire from the market value, but as the heads of the four major US technology companies attended the antitrust hearing some time ago, the US Internet market has been dominated by Google, Facebook, Apple, and Amazon. , TikTok sold to any one of them will intensify market monopoly. Although the current attitude of the White House is ambiguous, Microsoft is indeed a suitable acquisition initiator.

From a product perspective, Microsoft lacks tentacles in the C-end market. After owning TikTok, it is expected to participate in the battle of the American social network camp and get a share of the pie. On the commercial level, this acquisition can also help balance the duopoly of Facebook and Google in the US Internet advertising market (although it may not be what Zuckerberg wants)-no matter what it looks like, it should be an advocacy of freedom, Supported by the American economy of equal competition.

However, the outside world is worried about Microsoft’s acquisition. This technology company has undoubtedly created great success in the PC era, but it has fallen behind in the mobile Internet era. In addition, Microsoft’s three acquisitions of instant messaging software Skype, corporate social network Yammer and workplace social product LinkedIn are not considered successful.

This may leave companies such as Facebook and Google with a certain opportunity.

Facts have proved that the giants agree on TikTok. In June of this year, Google’s YouTube began testing features similar to TikTok’s 15-second video. Facebook also launched Reels on Instagram in July this year. Although this move was called copycat (imitated product) by Kevin Mayer, the head of TikTok US, even its other imitated product Lasso has failed. But Reels kept walking.

It is understood that this feature has been launched in India, Brazil, France and Germany, and will officially land in more than 50 countries including the United States and Japan early next month. There are media reports that Facebook is using large subsidies to transfer influencers.

It cannot be denied that Facebook has brought innovative experiences to social networks, but for a long time, Facebook’s image in front of competitors has been portrayed as “copy can not win, then buy.” This is true for both the transaction with Instagram and the idea of ​​Poke and Slingshot for Snapchat and Story, which was launched on Instagram.

Zach Burke has always had this determination. This time Reels is also burdened with the same task, just to see where TikTok is going in the end, and if there are new entrants, whether it has the ability to prevent the existing ones The turned balance is out of balance again.

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Digital Nomad

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