3 simple, mind-blowing numbers that show the dominance of Google and Facebook in Australian advertising

Chip Somodevilla/Getty ImagesFacebook co-founder, Chairman and CEO Mark Zuckerberg

  • The ACCC has been conducting a sweeping review into the power of Google and Facebook in the Australian media market.
  • It estimates the digital giants now scoop two-thirds of all Australian advertising spend.

The Australian competition authority’s report on the impact of digital giants in Australia is out.

The ACCC finds Google and Facebook have substantial power in the ad market and it makes 11 preliminary recommendations, including that a regulatory authority with significant powers of disclosure be tasked with monitoring how the digital giants rank both advertising and news content.

The backdrop to this is the crushing dominance that Google and Facebook command in the $8 billion online advertising market — the routes businesses use to tell consumers about their products and convince them to buy.

The report contains the following breakdown which highlights the stunning position Google and Facebook have managed to secure in the Australian ad market.

The ACCC estimates that for a typical $100 spent by advertisers on digital advertising (excluding classifieds):

  • $47 goes to Google (some of which is for the provision of intermediary services)
  • $21 goes to Facebook, and
  • $32 goes to all other websites.

(“All other websites” includes, of course, websites like Business Insider and other commercial news sites that largely rely on advertising dollars to support their expansion and development. There are hundreds — perhaps thousands — of these sites, competing for that 32% of spend.)

The ACCC further says that in the past past three years, Google and Facebook have captured more than 80 per cent of all growth in digital advertising.

So not only do the digital giants take two-thirds of all money spent; they take 80% of the new money too.

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