According to a provisional GroupM analysis just published by the Wall Street Journal, Google, Facebook and Amazon attracted the majority of all U.S. online ad spend in 2020. On this morning’s WJR Business Beat, Jeff breaks down the ad spend and discusses why these top three companies are winning big.
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Good morning, Paul.
Well, the impact of the COVID-19 pandemic on marketing strategies drove even greater shares of advertising to the big three tech giants: Google, Facebook and Amazon.
For the first time, those three companies attracted the majority of all U.S. online ad spend last year, according to a provisional GroupM analysis just published by the Wall Street Journal.
According to the journal using GroupM estimates, Google is estimated to have earned roughly $65 to $70 billion in U.S. ad revenue in 2020. Facebook, well, roughly $30 to $35 billion, and Amazon, roughly $15 to $20 billion.
Combined, their total is roughly $115 to $120 billion, representing the majority of all U.S. online ad spend.
So, why are these guys winning so big?
Well, first and foremost, these platforms provide great tools that make executing campaigns easy and straightforward, and the data they deliver during and post campaigns provides clear ROI support. Second, they all excel at search functionality. Third, the boom in e-commerce sends people to these platforms. And four, well, more new startups are being created now than ever before in our country’s history. And where do they go to advertise? Their first stop is Google, Facebook and Amazon.
I’m Jeff Sloan, founder and CEO of StartupNation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.
