5 companies have captured an insanely large share of the U.S. ad market over the last decade

"America's advertising market has transformed so dramatically over the last decade that almost two-thirds of it is now in the hands of just five tech companies. This week, MoffettNathanson released a report called "U.S. Advertising: Are We Near the AI Tipping Point?" which highlights, among other things, how generative AI is disrupting TV advertising as interest in traditional media continues to shift away."

"For instance, the findings point to how five major online companies-Meta Platforms, Amazon, Microsoft, Google owner Alphabet, and ByteDance-owned TikTok-have grown their share of the total U.S. ad market over the past 10 years. According to the research, the five companies cumulatively made up 22% of the market nearly a decade ago. However, MoffettNathanson predicts that those companies will make up 65% of the market this year-up 400 basis points-or $260 billion dollars."

U.S. advertising has shifted dramatically over the past decade: five tech companies—Meta Platforms, Amazon, Microsoft, Alphabet (Google), and ByteDance-owned TikTok—now capture about 65% of the total market, up from 22% nearly ten years ago. This concentration represents $260 billion of spending, while the remainder of the market is projected to shrink by $7 billion to $143 billion. Digital channels, aided by generative AI that improves targeting, engagement, and creative performance, are driving growth; overall ad growth is forecast near 6.3% for 2025. Traditional TV faces declines—cable down 8%, broadcast down 9%, total TV down 9%—with linear TV losing $4 billion, AVOD recapturing $2 billion, and retail-related spending adding $32 billion.

Read at Fast Company