Weekly New Digital Media - 03.05.17 (67)

Google and Facebook bring in one-fifth of global ad revenue

                              

Google and Facebook attracted one-fifth of global advertising spending last year, nearly double the figure of five years ago, research shows. Internet-only media companies are getting ahead of the online advertising market, while traditional news publishers have fallen far behind and been forced to make cutbacks. 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. Digital platforms funded by internet ads dominate the top 30. Most of the media owners in the ranking – 20 out of 30 – are based in the US. The US dominates for several reasons: it has the biggest ad market, US companies have invested the most in extending their reach abroad and Silicon Valley innovation has powered the growth of internet advertising.

[] Twitter is the fastest-growing media owner, increasing ad revenue by 734% between 2012 and 2016.

[] 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.

[] 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.

[] Two companies increase their advertising duopoly by earning a combined $106.3bn, nearly double the figure of five years ago

[] both companies 20% of global advertising spending last year, up from 16.3% in 2015 and 10.6% in 2012.

In my opinion, I think it is unfair how Internet- only media companies are getting all the marketing ad whilst traditional media is falling behind. I understand that yes, traditional media is dying out and it is mostly because of the developments of the NDM and also the audiences but traditional media is still viewed and consumed by the audiences, maybe not as much as the online media companies but it still happens. Print media is struggling even more because of the paywall they have to keep and demand from there audiences whilst intent only media companies don't have to face that issue.  Twitter and Facebook get a lot of criticism on how they control their sites and yet they are not taking responsibilities of the social community but there sites too, which is unfair. Internet only media companies have it easier to get away with things than traditional media; in my opinion.