Marketers Want Alternatives To Amazon, Facebook, Google

Amazon, Facebook, and Google will account for 43% of the $129.34 billion in U.S. digital ad spend in 2019, according to a recent study, coming in lower than the estimate of 68% from eMarketer.

While all that money continues to stream into digital, marketers have concerns that these three companies limit their advertising options -- especially search advertising -- and are looking for alternatives, according to findings from Factual.

Of the 43% who have concerns, 14% are extremely concerned, 20% are very concerned, 32% are moderately concerned, and 19% are slightly concerned. Some 15% are not at all concerned.

Factual commissioned Lawless Research to survey 700 brand and agency marketers regarding location data strategies between April 11 and May 5, 2019, to get a sense of their thoughts on privacy and the emerging ad channels they tend to favor.

Agencies spend on average 50% of their advertising budget with Amazon, Facebook and Google. Marketers spend about 41%.



It makes sense that companies with larger ad budgets allocate a greater share. About 46% of agencies and brands with an advertising budget of $50 million or more annually spend 60% of their budget with these companies.

Some 65% are looking for alternatives to improve advertising outcomes, although nearly half say the return on investment with the three companies is higher than on other platforms.

About 78% of those who are very or extremely concerned about limited advertising options are seeking substitutions. The irony of it all is that the best alternatives are mostly owned by these three companies such as Google’s YouTube, Amazon’s Twitch, and Facebook’s Instagram.

And while some marketers seek alternatives, others say they plan to place ads in traditional media, such as TV, radio, and print as well as online banners, SMS, video, search engines, streaming radio, blog sites, and location data vendors.

Marketers also are beginning to use more location data, while mobile at 81% is the top channel followed by TV at 49%, digital-out-of-home at 47%, voice and connected speakers at 45% and automotive at 28%.

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