64% of Digital Ad Spend Controlled by 5 Companies

Darren October 29, 2011 38 Comments

I was doing some calculations for my own purposes and wanted to find out what percentage of the digital media ad spend (search, display, mobile, etc) is controlled by Google, Yahoo, AOL, Facebook, and Microsoft. Well, after searching through their 10K’s, it’s about $40.1B, or roughly 64% of the worlds digital media ad spend.

According to a ZenithOptimedia press release on October 3, 2011, worldwide digital advertising accounted for about $64.03B.

Google generates approximately 364% more revenue from advertising than it’s next closest rival, Yahoo!.

With Facebook at $1.86B in advertising revenue (excluding virtual currencies/goods) for 2010, it puts them at right behind Microsoft but ahead of AOL. With Facebook only now starting to monetize their platform, you can start to see how big an impact they could have on the dominance of the digital advertising landscape.

And of course, you can really see how dominant Google is.

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matthew goldstein

Very interesting, Who is #6, NYT/about.com with $387 million in 2010 digital revenue? If so, they are a very distant #6.

http://www.darrenherman.com dherman76

Yes, very distant! Thanks for dropping by, Matthew

http://www.facebook.com/boris.ovchinnikov Boris Ovchinnikov

Don’t forget about international players based outside US. Baidou is close to AOL, and even Russian Yandex is above about.com

matthew goldstein

Very interesting, Who is #6, NYT/about.com with $387 million in 2010 digital revenue? If so, they are a very distant #6.

http://www.darrenherman.com dherman76

Yes, very distant! Thanks for dropping by, Matthew

http://doctor-benjamin-vagner.blogspot.com/ בנימין וגנר

wow google is taking over the world

http://www.jonsteinberg.com jonsteinberg

And it comes to them from 4 firms! 4 Firms spend 75% of the dollars in 5 places!
http://www.flickr.com/photos/steinbergjon/6196646820/in/photostream

http://doctor-benjamin-vagner.blogspot.com/ בנימין וגנר

wow google is taking over the world

http://www.jonsteinberg.com jonsteinberg

And it comes to them from 4 firms! 4 Firms spend 75% of the dollars in 5 places!
http://www.flickr.com/photos/s…

http://www.audiencefuel.com Al Silverstein

Some great data here. On the bright side, that still leaves $24 billion for the rest of us… and 40.1 Billion reasons to find a solution to that addresses brands and publishers needs better than Google does.

http://www.audiencefuel.com Al Silverstein

Some great data here. On the bright side, that still leaves $24 billion for the rest of us… and 40.1 Billion reasons to find a solution to that addresses brands and publishers needs better than Google does.

Brian P

A bigger economic side note from this concentration is….. aside from Google and maybe Facebook the others on this list are not hiring but actually laying off employees…..so for every dollar the big agencies continue to overspend in the top 5 there are less jobs created and less working people with disposable dollars to buy the goods and services they are trying to sell……

http://www.darrenherman.com dherman76

Really good point.

Chris R

I can’t decide whether to ‘like’ this b/c it’s a great state-of-the-state…or to ‘dislike’ b/c of the obvious.

http://www.darrenherman.com dherman76

I totally agree with you. “like” is the wrong descriptor

Brian P

A bigger economic side note from this concentration is….. aside from Google and maybe Facebook the others on this list are not hiring but actually laying off employees…..so for every dollar the big agencies continue to overspend in the top 5 there are less jobs created and less working people with disposable dollars to buy the goods and services they are trying to sell……

http://www.darrenherman.com dherman76

Really good point.

Chris R

I can't decide whether to 'like' this b/c it's a great state-of-the-state…or to 'dislike' b/c of the obvious.

http://www.darrenherman.com dherman76

I totally agree with you. “like” is the wrong descriptor

Gigantevaz

Wonderful way to promoting the things with these website because these are very well placed and re putative website on internet and in comming days to be.Good

http://www.facebook.com/boris.ovchinnikov Boris Ovchinnikov

Don't forget about international players based outside US. Baidou is close to AOL, and even Russian Yandex is above about.com

http://www.facebook.com/boris.ovchinnikov Boris Ovchinnikov

Not true. 75% is their share in total advertsiment market. For online, and especially for Google, the share of small independent agencies and direct advertisers is much higher than for TV or press

http://www.facebook.com/peter.bordes Peter Bordes

thats certainly very eye opening data darren. I would be very interested to see a subsegment of each co regarding what ad categories and who dominates by category..

http://www.facebook.com/peter.bordes Peter Bordes

thats certainly very eye opening data darren. I would be very interested to see a subsegment of each co regarding what ad categories and who dominates by category..

http://twitter.com/RubenMartinezS Ruben Martinez

It would be fascinating to see #adspend over a timeline of the last 5 years to help us guess the next 2 years. Will the aggregation continue?

http://www.darrenherman.com dherman76

Great question. I think each of the companies listed above are not done acquiring and they will buy businesses who have the opportunity to derive additional revenue, even if it means going thru different media vehicles then is currently serviced.

http://twitter.com/RubenMartinezS Ruben Martinez

It would be fascinating to see #adspend over a timeline of the last 5 years to help us guess the next 2 years. Will the aggregation continue?

http://www.darrenherman.com dherman76

Great question. I think each of the companies listed above are not done acquiring and they will buy businesses who have the opportunity to derive additional revenue, even if it means going thru different media vehicles then is currently serviced.

http://piattiprojects.wordpress.com/ Dylan

thanks for this, is definately interesting: However, what I would like to see http://piattiprojects.wordpress.com/ is an overlay of the growth path trend in advertising spend over the last 5 years for all 5 of these companies, so that one might compare the rate of acceleration or deceleration of revenue allocation to their platforms?

I have referred to you here: http://piattiprojects.wordpress.com/

http://piattiprojects.wordpress.com/ Dylan

thanks for this, is definately interesting: However, what I would like to see http://piattiprojects.wordpres… is an overlay of the growth path trend in advertising spend over the last 5 years for all 5 of these companies, so that one might compare the rate of acceleration or deceleration of revenue allocation to their platforms?

I have referred to you here: http://piattiprojects.wordpres…

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http://ecommercestrategies2012.blogspot.com/2011/12/roas.html ROAS

Interesting.. It was good to know about these facts. Google undoubtly takes the number 1 position. Thanks for sharing the views.

http://ecommercestrategies2012.blogspot.com/2011/12/roas.html ROAS

Interesting.. It was good to know about these facts. Google undoubtly takes the number 1 position. Thanks for sharing the views.

TimTerrella

Yes this maybe seen as obvious but I think would be more comepling would be a % of Digital Ad Buys Controlled by (#)X and who they are. In other words who are the major advertisers supporting Google Facebook Yahoo MSFT Revenues etc .

TimTerrella

Yes this maybe seen as obvious but I think would be more comepling would be a % of Digital Ad Buys Controlled by (#)X and who they are. In other words who are the major advertisers supporting Google Facebook Yahoo MSFT Revenues etc .

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