For years, Facebook and Google have dominated the digital advertising landscape, holding a combined market share of around 60%. However, emerging trends and shifts in the industry are beginning to challenge their dominance. Publishers, media brands, and even new competitors are exploring alternative ways to generate revenue, reshaping the digital ad market. As Mediaocean CEO Bill Wise noted in Ad Age, “If history teaches us anything about monopolies or duopolies, it’s this: Nothing lasts forever.”
The Rise of Amazon in Digital Advertising
Amazon’s increasing presence in the digital ad space is perhaps the most significant threat to Facebook and Google’s duopoly. Growing more than 50% in 2019, Amazon now holds nearly 9% of the market share, leveraging its vast customer data and e-commerce platform to attract advertisers. As Wise explains, Amazon’s potential entry into the Internet Service Provider (ISP) market could give it even more advantages, offering targeted advertising opportunities on a scale that could rival the Big Two.
The Democratization of Ad Data
One of the biggest shifts in the advertising landscape is the growing democratization of ad data. Big brands are demanding greater access to their own data, customer data platforms (CDPs) are enabling smaller companies to harness insights from user data, and the publishing sector is increasingly selling ad space through in-house solutions. This trend allows brands of all sizes to better understand their audience, reducing reliance on Facebook and Google for data-driven advertising.
Regulatory Pressure and Antitrust Scrutiny
Regulatory changes are also creating challenges for the duopoly. Both Facebook and Google are facing formal antitrust investigations, as governments examine their practices of locking out competition. This increased scrutiny puts pressure on the two giants to change their ways and opens the door for new players to enter the market.
New Competitors: TikTok, Netflix, and More
Media consumption habits are becoming increasingly fragmented, with platforms like TikTok, Netflix, Disney Plus, and Amazon Prime capturing more attention from users. As Facebook’s user engagement declines, advertisers are starting to explore these newer platforms, offering a wider range of options for reaching their target audiences.
The Innovation Gap
Smaller competitors in the digital ad space are proving to be more agile and innovative compared to Facebook and Google. As Wise points out, these giants have gone several years without introducing groundbreaking innovation. In contrast, new entrants are pushing boundaries in an effort to gain market share, while Facebook and Google, though financially secure, have become less inclined to “break the mold.”
A Changing Digital Advertising Landscape
The combination of Amazon’s rapid growth, the democratization of ad data, regulatory scrutiny, the rise of new competitors, and the innovation gap is leading to a potential shift in the digital advertising landscape. As advertisers seek alternative platforms and brands focus on genuine audience engagement, the long-standing duopoly of Facebook and Google may be witnessing the early stages of its decline.
From where we stand, these changes signal a positive trend, giving brands more choices and opportunities to engage meaningfully with their audiences. As Wise reminds us, even the most dominant players can’t maintain control forever—just ask AOL, Napster, or MySpace.
