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How Big Is The Digital Advertising Market

According to eMarketer, in the US alone, digital advertising spending will be around $129 billion in 2019. According to FourWeekMBA analyses, within this market, the most significant players are companies like Google, Facebook, Amazon, Twitter And Microsoft‘s Bing with a combined $190 billion revenue from advertising in 2018.

A glance at the digital advertising market and its key players

($116 billion in 2018 from search advertising), Facebook (over $55 billion in advertising revenues in 2018), Amazon (over $10 billion in 2018 from product advertising), Twitter (with $2.6 billion in advertising in 2018), and Microsoft‘s Bing (search advertising for about $7 billion in 2018)

Google

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Google generated over $116 billion from advertising revenues in 2018, which represented 85% of its total revenues. Of those revenues over 70% came from traffic via Google main properties (Google search engine, YouTube, Gmail, and others). Google’s main properties are monetized primary via a cost-per-click mechanism. Network members sites are primarily monetized on a cost-per-impression basis. Google also spent over $26 billion in 2018 to sustain its traffic on both its properties and as a revenue-share mechanism with its network members (AdSense and AdMob).

Amazon

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Amazon more than doubled its advertising revenues from the first nine months of 2017, compared to 2018. Indeed, the revenues went from $2.92 billion in 2018 to $6.72 billion in 2018.
Compared to Facebook $38.37 billion and Google $83.68 billion for the same period, Amazon is still a small player. However, if we take into account that Amazon runs a diversified business model, with several revenue streams, it also gives the company more space to experiment with advertising!

Facebook

facebook-advertising-revenues

In 2018 Facebook revenues came mostly from advertising. And within its advertising revenues, most of it came from mobile. We can’t know for sure the breakdown of revenues between the several Facebook Inc. products (the two major products are Facebook and Instagram) but we can assume that a good chunk of this revenues is coming from Instangram.

Microsoft’s Bing

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Microsoft has a diversified business model spanning across Office products, Windows, Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud and more. With its search engine, Bing, that Microsoft integrated also in its key products the company made around $7 billion in 2018.

Twitter

how-does-twitter-make-money
Twitter is a platform business model, monetizing the attention of its users in two ways: advertising and data licensing. In 2018, advertising represented 86% of its revenue at over $2.6 billion. And data licensing represented over $424 million primarily related to enterprise clients using data for their analyses.

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Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, professionals, and entrepreneurs in 2019 alone | Gennaro is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate and become profitable | Gennaro is an International MBA with emphasis on Corporate Finance | Subscribe to the FourWeekMBA Newsletter | Or Get in touch with Gennaro here

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