MARKETING NEWS
Oligopoly? Not so fast – Marketing Land
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Maybe I got out of the wrong side of the bed today, but I see opportunities to call B.S. everywhere, on indiscretions large and small.
So I’ll start with a small one. I’ve been seeing Google, Facebook and Amazon referred to as an “oligopoly.” It’s not. Yes, marketers are spending 43% of their budgets with those three properties, but the distribution of spending allocated to Google/Facebook/Amazon is dramatically different.
The truth is that just over 2% of digital ad spend is going to Amazon. That doesn’t qualify for membership into the oligopoly in my book.
I could even argue that characterizing the market as a duopoly isn’t even accurate, with Facebook only accounting for 11.7% of digital ad spend. Whether Google’s share of over 29% makes it a monopoly is a discussion for another day.
My point; let’s not get carried away. Amazon’s growth is impressive and expected to continue accelerating. But it’s a small (though not insignificant) part of the digital advertising landscape.
Opinions expressed in this article are those of the guest author and not necessarily Marketing Land. Staff authors are listed here.
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