The investigation by consumer watchdiog the ACCC into digital platforms dug deep into how online advertising works in Australia.
The ACCC, in its 600-page report released today, estimates that for a typical $100 spent by advertisers on online advertising (excluding classifieds):
- $47 goes to Google (some of which is for the provision of ad tech services)
- $24 goes to Facebook
- $29 goes to all other websites and adtech.
The ACCC estimates Google and Facebook have captured more than 80% of all growth in online advertising over the past three years.
"The rise in online advertising has also been accompanied by the rise of Google and Facebook as the two largest suppliers of online advertising opportunities," the report says.
"Outside of Google and Facebook, online advertising is highly fragmented with a large number of websites offering ad inventory, each with a small market share."
The ACCC notes that the owners of media websites can be considered competitors to digital platforms for the supply of ad inventory but are also reliant on Facebook and Google, which offer ad services that assist websites in the selling of their ad inventory.
The expenditure on online advertising has increased substantially in Australia, rising from less than $1 billion in 2005 to $8.8 billion in 2018.
Over the same time, spending on print advertising has fallen from $7.9 billion to just under $1.9 billion.
As a share of all advertising, online advertising rose from less than 1% in 2003 to 53% in 2018.
Over the same time, print advertising fell from more than 55% in 2003 to 11% in 2018.
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