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Google And Facebook Devour Ad And Data Pie -- Scraps For Everyone Else

Jason Kint, CEO of Digital Content Next, regales us with his take on some eye-popping data points. For one, there's the Interactive Advertising Bureau(IAB)/PwC's recent quarterly U.S. advertising report, which was followed by a press release from the IAB noting that Q1 206 U.S. Internet ad revenues hit a record after the highest growth in four years for a “21% rise over the same time period in 2015.” Kint states, "We don’t dispute this number. We just think it’s important to highlight that only two IAB members are benefiting from this increasingly lopsided ecosystem."

Kint elaborates: "Using Facebook and Google’s public earnings, it’s very simple to back into the math." Kint showed the estimated U.S. ad revenue growth for Google, Facebook and what he calls “Everyone Else.” His calculations show "nearly 90% of the growth going to the two companies. If you’re in the 'Everyone Else' group, you’re competing for $300 million of the $2.7 billion in Q1 growth." But he goes further: "It seems the only other ways money is being made in the digital advertising ecosystem is through: Intermediaries who capture 55% of the supply chain according to IAB research on the 'Ad Tech Tax' that marketers are funding; Fraud, which which according to the Association of National Advertisers (ANA) results in more than $7 billion per year being dislocated; and other shenanigans, which the ANA reported on last week in its groundbreaking Transparency Report."

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