We know that Google and Facebook are the heavyweights in the world of digital advertising, but little by little other players seek to gain ground, Amazon, Walmart, and Spotify are some of them.
That of Mountain View is the rival to beat, only during the first quarter of this year reported income for this concept higher than that obtained by 40 thousand 975 million dollars, of which 33 thousand 763 million for advertising, although they resented the impact of the coronavirus, they still exceeded what was recorded between January and March last year.
However, it appears that it does not yet suffer the full effects of COVID-19
They will go down for the first time
This is due to the fact that recent data indicates that although Google is one of the companies indicated as among the lucky ones in enduring the global crisis, it will also suffer significantly from these effects.
According to an eMarketer report, referred by CNBC, at the end of this year the company will see its advertising revenues fall, for the first time in the United States, at least as a result of the brands having cut or suspended their investment in the sector, in particularly those related to travel companies.
According to data from the firm specialized in market research, Google will enter around $ 39.55 billion, which will represent that it is 5.3 percent below what it registered in 2019.
Although the report anticipates that for the next year the technology will recover growing a 20 percent and by 2020 I will 11.8 percentIt is a fact that the company must reinforce its value proposition.
His rivals win
It happens that the data points out that as Google lost ground, other players are gaining it. That is, according to eMarketer, the digital advertising market in the United States will end in 2020 with that of Mountain View with the 29 percent of the market share, but Facebook will approach with the 23 percent, and Amazon will already take hold with the 10 percent.
For the company run by Sundar Pichai, it is the right strategy. Although they have not stopped reinforcing their advertising offer (it is enough to review the multiple adjustments in recent months), it is clear that their rivals are growing at a faster rate, so that they are targeting other business divisions such as Youtube and some others, are the way to grow income from a broader field of action and not just depend on your main weapon.
This becomes stronger if we remember that, according to various reports, not only is Facebook the threat, Amazon keep cutting ground.
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