The coronavirus crisis has taken its toll on many of the players in the advertising industry. Traditional advertising media have been among the most affected, but new media and digital environments have not been left out of the situation and the drop in advertising investment. At the beginning of the crisis, for example, the data made it clear that Facebook’s advertising prices were plummeting and that the decline in investment was also reaching search advertising, one of those safe values that has remained constant in the online advertising market.The so-called duopoly, Facebook and Google, therefore did not remain on the sidelines of the falls and were one of the environments in which advertising investment suffered. An estimate even put figures on that setback. Although both companies are expected to close the year with positive numbers, the coronavirus crisis could have caused them to lose $ 44 billion in never-bought ads.
But the interesting thing is not only that both giants have lost money and have been victims of the situation like the other players in the industry (and Facebook could be even worse at the end of the year, now due to political Guinea Email List scandals and calls for a boycott). ), but these months could have had a more profound effect. It is not only interesting to see who and how much money is losing, but also how advertising investments have migrated. Have these months been a blow to the power structures established in the advertising market? And, more interestingly, has it served to position the incumbent player in online advertising as an even stronger rival?Just as analysts have been pointing out that Facebook and Google were the big players in the market and who took the most important part of the pie, they have also been pointing out that Amazon was the only emerging player that could at some point stand up to the duopoly.
In the latest results presented before the coronavirus crisis, in February, its advertising revenue had already grown by 41% and at the end of last year it was already indicated that its boom was taking its toll on Google and its search advertising business. More and more product searches start directly on Amazon and, at the same time, during the health crisis more and more consumers used e-commerce to purchase products.The data is not global but the latest eMarketer data on the US market already make it clear that, if someone benefited from the crisis in advertising terms, that someone was Amazon.Google is going to record this year for the first time since 2008, when eMarketer began measuring the market, its first dip in the (US) advertising market.
You will lose 5.3% of your advertising revenue year-on-year, which will lead you to lose 2.2% of your market share. e Marketer believes that Google will close the year with revenues in that market of $ 31.81 billion, 7.2% less than it closed in 2019. As noted in The Wall Street Journal , Google had been able to overcome the recession of ago a decade without revenue drops, but the coronavirus crisis has hit some of its top advertisers.Against this, Amazon will close with about 9,310 million dollars, 25.2% more than last year. As explained in Fast Company , the gap that Google leaves free in the market will be the one that Amazon and Facebook seek to cover. Facebook, in fact, will close the year with growth, underpinned by Instagram.