Google and Meta's advertising market share fell below 50% for the first time since 2014, to 48.4% in 2022. That figure is expected to fall to 44.9% by the end of 2023.
For the first time in nearly a decade, the two largest players in online advertising are showing this decline.
Their combined market share shrank as a result of brands' increased access to more advertising formats. Amazon, TikTok, and streaming services such as Netflix are all expanding their reach. People are spending less time online on sites like Google and Meta, so it's no surprise that they're running into challenges, despite their continued growth.
Apple's iOS 14 update in 2021, which required apps on its devices to ask users if they wanted to be tracked, also impacted Meta and other platforms. The vast majority of iPhone owners have made the decision not to be. This update had no effect on Google because it relies on customer intent as revealed by a user's search terms.
According to Insider Intelligence, TikTok’s hold on the digital ad market more than doubled in 2022. It has around 100 million monthly active users in the United States. However, its overall share remained small, accounting for only 2% of digital ad spending in the United States.
Amazon, an already large digital-advertising player, gained market share in the United States last year. Amazon accounted for 11.7% of digital ad spending in the US last year and is expected to increase to 12.4% by 2023, as per an Insider report.