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Big Tech Q1 Earnings to Peel Back Curtain on Digital Ad Market

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For Variety VIP+ subscribers: Big Tech Q1 earnings are set to peel back the curtain on the the digital ad market, and it’s a moment of truth

Big Tech is still as big as ever. The Big Five — Apple, Microsoft, Amazon, Alphabet and Meta — raked in a whopping $1.5 trillion in sales last year.

After being the major growth story within advertising, digital advertising has officially begun to lose steam, with growth in the U.S. slowing to just 10.8% in 2022, down from 35.4% in 2021, according to a new report from IAB and PwC. According to Insider Intelligence, Meta and Google combined represented 60.6% of U.S. digital ad revenue in 2022, which was down from 61.6% in the prior year. The Meta-Google duopoly’s fall from grace will likely continue as other players, including TikTok parent Bytedance and Amazon, continue to steal away market share.

Despite the slowing growth, it’s not all bad news ahead for digital media, and there are some reasons to be bullish on the space.

 

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