Neiman Journalism Lab: What is the impact of Google, Apple, Facebook and Amazonon Journalism?
“The top five digital ad companies — none of which is owned by a newspaper company — took in 64 percent of all digital ad spending in the U.S. in 2012. That’s Google — with an astounding 41 percent of all that ad money — and then Yahoo, Facebook, Microsoft, and AOL. Facebook is most ascendant among those four. Of Facebook’s $5 billion in 2012 revenue, at least $4 billion of that is in the U.S. That means Facebook’s out-sold the entire U.S. newspaper industry, which took in about $3.5 billion in online advertising.
The Big Five’s share isn’t just massive: It’s growing, at the rate of one to two percent a year. That means that publishers — legacy and digital-only — are competing with every other ad seller on the planet for about a third of the ad pie that’s left over after the big guys take theirs.
Google’s outsized revenue is built on paid search, a category it dominates worldwide. In the U.S., it claims an 80 percent share, Bing picking up the relative crumbs. In Europe, its dominance is even greater. Paid search — early on, one of the most trackable methods of advertising — itself is about half of the digital ad total.
The display category of digital advertising — the one area where news publishers have long positioned their sales — is one of the slowest-growing. Rich media, video, social, and mobile advertising — all relative weak areas for all but the largest and a select few other news publishers — are gaining share of the digital ad spend, as display grows less rapidly.
Global digital advertising hit $100 billion in 2012, surpassing print in the U.S., Russia, Australia, and Brazil, among other individual markets — and globally.”
“In particular, the explosion in social media means that publishers have seen their share of advertising real estate on the web badly squeezed. Analysis of 2011 figures from DoubleClick shows that news publisher sites account for less than two percent of page views on sites that carry ads globally. Social Media accounts for 50%. Portals account for 15%. Its a challenging competitive position to say the least and since 2011 the share of ad real estate for news publishers has likely fallen further.”