Smaller Tech Firms Chip Away at Google and Facebook Ad Dominance

Google and Facebook continue to lead the digital advertising market, but smaller competitors like Snap, Amazon, and Twitter are growing at a much faster rate.

27 Jul 2019 • 1 min read

Google and Facebook still control a combined 51 percent of the global digital ad market, but smaller competitors grow at a much faster pace. Snap leads this group with a 48 percent revenue increase, while Facebook and Google report growth of 28 percent and 16 percent, respectively. Analysts note that the duopoly's overall market share in the U.S. drops in 2019 as the digital advertising landscape evolves.

Advertisers eagerly seek alternatives to the established giants, driving significant growth for platforms like Amazon and Twitter. Amazon sees its advertising-focused category jump 37 percent to reach $3 billion, while Twitter enjoys a 21 percent surge in ad revenue. These companies attract marketers who want to diversify their spending and reach consumers in new ways.

Snap remains unprofitable with a $255 million second-quarter loss, but its strong traction with a young, devoted user base excites advertisers and boosts investor confidence. The company's stock finally climbs above its 2017 IPO price following the earnings report. As global digital ad spend approaches $333 billion this year, this shift highlights a clear willingness among advertisers to explore opportunities beyond the traditional market leaders.

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