Google and Facebook dominate market share of online advertising

In a recent article published by Business Insider, the Interactive Advertising Bureau (IAB) reported U.S. ad industries spent a combined $72.5 billion in 2016 on online advertising as compared to $59.6 billion in 2015.  But, of that growth, 99 percent of it was attributed to Google and Facebook combined.

Last September, Facebook announced it had reached 4 million advertisers after reaching 3 million six months prior. The greater majority of Facebook’s advertisers are small- and medium-sized businesses, who find Facebook’s ad program and business pages as easy to manage as regular Facebook profiles. “We’ve worked hard to make our ads very easy to use, very simple, low cost and high ROI,” said Facebook’s Chief Operating Officer Sheryl Sandberg. Facebook first launched an ad program in 2004, where users could buy “Flyers” for approximately $10-$40 per day. Through different adjustments to their ad technology, such as lookalike audiences and regional data, Facebook has given more and more tools to businesses to reach their target audiences.

Comparatively, Google accounts for a greater share of the growth (54 percent). As is with Facebook, Google is in the business of selling attention. When users browse Google,it’s estimated roughly 10 percent of users will click on the ads and promoted links at the top of the page. Because those are paid links, these top positions are easier to obtain. The alternative is through search engine optimization (SEO), which pushes people’s posts to the top of the organic list. SEO is obtained by using branded and popular keywords that are popular among users.

Dirxion online catalogs offer a variation of ad platform services for customers through widgets. The widgets, which come in a variation of sizes and implementations, can be either integrated into an existing advertising program or the customer can sell space directly to customers without having to use an external advertising service. Dirxion online catalog products can be integrated into existing Facebook pages to allow customers to browse directly from the business page.

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