On today’s Business Beat, Jeff discusses how three companies alone receive half of all U.S. ad spend: Google, Facebook and Amazon.
Tune in to the Business Beat, below, to learn more about how Google, Facebook and Amazon are earning this U.S. ad spend and how you can get your business noticed, too:
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Good morning, Paul!
Well, advertising, as we all know, is big business, and who gets the lion’s share of that big spend? How about this, Paul? 50% of all U.S. ad revenues now end up in the accounts of just three companies. That’s right: half of all ad revenues generated in this country go to just three companies.
So, who are these companies, and why is this the case? Well, first, the big three: it’s Amazon, Google and Facebook. The U.S. is home to some of the biggest advertising spenders in the world, amounting to now over $225 billion a year, and Amazon, Google and Facebook were on the receiving end of roughly $120 billion of this total.
And their take continues to grow year over year. Why is this the case? Well, you know how much we focus on the Business Beat about all business going online these days as a primary way of doing business, not a supplemental way as it used to be. And all of this online activity has positioned online ads as drivers of two-thirds of all ad spend in this country today.
Now, for most of us, we view Google and Facebook as likely players in online advertising, but most didn’t know about Amazon’s presence as being such a big player and being so dominant. Well, typically known for their e-commerce business, Amazon now also makes over $16 billion a year in ad revenue.
They do? Of course they do. It’s Amazon, right, Paul? Want to go get noticed? Well, do it online. Does it get any clearer than this — that the land of opportunity for businesses exists today like everything else in life: online. And the way to get the word out to drive business to your doorstep is also online through 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.