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Google, Facebook Have Tight Grip on Growing US Online Ad Market: PwC

Posted on June 7, 2019 by admin

The US Internet marketing business is projected to hit $160 billion (approximately Rs. 11,00,000 crores) from 2023 from $107 billion final year, directed by fast-growing categories like mobile video together with Alphabet’s Google and Facebook firmly dominating the current market, consultancy PwC said on Wednesday.

Google’s YouTube dominates online movie, whilst Facebook has been expanding its video product named Watch and incorporating advertising choices.

Google and Facebook are currently under watch by US regulators for possible antitrust concerns, as well as tech giants Apple Inc and Amazon.com.

US wireless carrier AT&T despite spending $85 billion for media company Time Warner to transform into a press and marketing firm, has only managed to eke out single-digit market share, according to PwC.

Gaining market share is difficult because platforms must have characteristics that are unique and new as well as some degree of emerging technologies, said CJ Bangah, a leader at PwC. An advantage that the telecommunications companies like AT&T have over Google and Facebook is that they will benefit from 5G, the next generation wireless network that’s expected to bring technology such as autonomous cars to reality.

“The chance created for telecom providers is they know where consumers are, they are benefiting from 5G and they understand what apps consumers spend some time on,” she explained.

Amazon, the largest US online retailer, has managed to gain the maximum ground over the last year, though it too only has single-digit market share, PwC said.

Amazon’s product ads are fueling their growth, Bangah said, because advertisers are able to reach customers on a site where people are in the mindset to shop.

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