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How indie publishers can monetize in the shadow of Facebook and Google

Last Updated: November 6, 2017

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With multinational technological companies Google and Facebook conquering the field of online advertising revenue, many smaller companies and indie publishers are left wondering where they’ll end up in the digital world – if they’ll end up anywhere at all. According to data recently released by the Interactive Advertising Bureau, digital advertising revenue in the U.S. increased by 20% in the past year. This puts the American digital ad revenue at a record of $72.5 billion. Unfortunately for smaller companies, the vast majority of online advertising revenue is coming from tech giants Google and Facebook. The duopoly of the digital advertising industry Because the specific ad-only revenues of Facebook and Google aren’t disclosed, the exact calculations of revenue aren’t available. However, Jason Kint of Digital Content Next, a publishing industry trade group, reported in June 2016 that Google and Facebook accounted for a grand total of 89% of the digital ad growth. Additional calculations made by Pivotal Research analyst Brian Wieser indicate that the percentage of digital ad growth consumed by Google and Facebook may very well be closer to 99%. In either case, Google and Facebook together are proving to be a concern for the U.S. digital ad market. With Google and Facebook out of the picture of beneficial growth, Wieser said, “the average growth rate for every other company in the sector was close to 0.” “The big point is that if Google and Facebook are the primary interfaces to buyers, over the long-run they own the relationships and the related data. Every partner they work with is subservient.” The digital advertising industry controls much of what Internet users see online, which is what helped spur what’s been called the fake news crisis. Both Facebook and Google were allegedly used by a propaganda group called Internet Research Agency based in St. Petersburg to place various fake news articles around Facebook news feeds and above YouTube channel videos. The power these two tech giants have is reflected in the fact that many marketing agencies are still reluctant to pull their advertising from Facebook and Google despite questions of brand safety, credibility, and ad placement. “The entire advertising world is very anxious,” said Mike Paul, an independent expert, to NBC News. “But few will admit publicly that the negative news is affecting Facebook because it is the 800-pound gorilla globally for ad and media buyers.” Regardless of the high rates of success in digital ad revenue, Facebook CFO David Wehner has warned that the company’s own ad revenue growth will slow in the second half of this year. This is because, Wehner says, Facebook will eventually run out of places to set digital advertisements in its online feed. However, any significant decrease in online advertising revenue is unlikely. Facebook…

Source: How indie publishers can monetize in the shadow of Facebook and Google

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About the author / 

S K Routray

S K Routray is a computer science graduate and Co founder at Gracioustech.com. He worked as a Online Marketing lead at many MNC Companies. He has passion for writing on SEO techniques, Social Media Marketing and digital marketing techniques. If he wasn’t an online marketer, he'd take his love for food and become a great chef cum hotel entrepreneur. Join NAS Writers team to write for NAS.

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