Meta and Alphabet have lost their dominance in the digital advertising market in the United States after years of dominating this market, as a result of intense competition from companies such as Amazon, TikTok, Microsoft, and Apple.
Expectations indicate that the share of Meta and Alphabet in digital advertising revenues in the US market will decrease by 2.5% to 48.4% during the current year, which is the first time that the two companies do not acquire a majority share since 2014.
Also, this data will represent the fifth consecutive decrease in the share of the two companies in the digital advertising market from its peak recorded in 2017 at 54.7%, and it is expected that the percentage will reach 43.9% in 2024.
Globally, the share of Meta and Alphabet in the digital advertising market decreased by 1% to 49.5% in 2022.
As technology firms battle for a larger piece of the $300 billion digital advertising pie, they are facing an uphill struggle due to rising interest rates and high inflation. This has led many companies in this sector to cut their budgets in order to stay afloat.