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Alphabet and Meta's Duopoly in The Ad Market to End in 2023. Crisis or Opportunity?

Alphabet and Meta will no longer hold a majority share of the US online ad market for the first time since 2014.Alphabet and Meta's Duopoly in The Ad Market to End in 2023. Crisis or Opportunity?

According to the Financial Times, Alphabet and Meta will no longer hold a majority share of the US online ad market for the first time since 2014. Their duopoly market share is expected to decline to 48% in 2023.

Some have questioned whether this indicates a struggle within the industry as a whole, or just a reshuffling of market share.

The reality is that the industry is expanding. New players are entering the market, creating new opportunities and gaining market share.

In particular, I see the industry moving in three "new" directions:

  1. CTV ads (connected tv ads)
  2. Ads in native apps
  3. Merchant media

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Connected TV (CTV)

‍Netflix has recently launched its ad-supported subscription tier, where video ads are served in movies and tv series. This is thanks to a partnership with Microsoft, which is boldly entering the CTV ads space. Disney+ is planning to do the same soon and we can expect other streaming services to follow.

CTV will be one of the biggest trends in the ads' industry in 2023. Yet, not all companies will find success in this area. While Alphabet has already embraced this trend through YouTube, Meta missed the boat. In fact, platforms that are primarly designed for mobile usage struggle to break into the TV space, which opens the door for new players.

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‍Ads in native apps

‍It has become clear how digital ecosystems are essential for big tech profitability. Apple is doing everything in its power to keep competitors out of its ecosystem. APP (Apple tracking transparency) is a great example of this. Apple Search Ads are in, Facebook Ads out. I expect to see more and more ads on Apple native apps on iPhone, Mac, Apple TV and more. In fact, its ad business is forecasted to grow by 26% in 2023, with plans to double its digital advertising business workforce.

‍Meta is also trying to build its ecosystem with the Oculus device and its metaverse. Will it succeed?

‍

‍Retail Media

‍This will be another great trend in 2023.

Retailers can sell ads directly using their own customer data rather than selling the data to third parties. Amazon and Walmart are among the largest players in the sector, with their ad business expected to grow by 19% and 42% respectively next year.

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Advertisers will need to reassess their media mix in 2023!

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