By Adam Fraser
I read a stat this week which really caught my eye.
I have written before about the increasing dominance of Google and Facebook, who own 8 of the top 10 popular mobile apps in the USA. Further, a recent ComScore study showed the top two most popular websites were Google and Facebook.
However notwithstanding this, a stat I saw in an interesting NY Times article on the media landscape really smashed me between the eyes. The quote was:
“In the first quarter of 2016, 85 cents of every new dollar spent on online advertising will go to Google and Facebook, said Brian Nowak, a Morgan Stanley analyst”
15 percent to the entire rest of the internet. Simply staggering (note, I have reached out to the analyst to try to verify the source of the underlying data).
The internet was meant to democratise publishing and level the playing field. Not so much. Access to a truly scalable online audience now comes down to two main “networks”.
(If Apple and Amazon are thrown into the discussion across different metrics, the concentration level amongst a small number of players gets even higher).
The long term ramifications of such concentration are wide-ranging and significant. Big data analytics, algorithms and consumer privacy are front of mind. Do these networks now know more about consumers than even governments?