Question

What is the relative share of Google and Facebook in regard to “attention” vs “revenue?”

Answer 1

Relative market share is study of market share of a firm’s or a brand’s in comparision with its leading competitor. This indicate as a matrix form , Market concentration, a related metric, to measure the level of a comparatively small firms share against a large share holders of the market and useful in evaluating the type and degree of competition in those markets. The purpose of the study of “relative market share metric” is to find a firm’s or a brand’s success and its position in the market.

Google and Facebook are two key players gradually establishing their duopoly in the consumer attention and advertising space from last few years. According to latest digital marketing report by GroupM's , In the year 2016, Google as market leader accounted for total 13% of all global advertising market and 42% of digital advertising. Facebook has the market share of 5% and 15% respectively. You probably know that already.

These two leaders of the industry meet different online advertising needs , facebook is great for micro targeting, google is the king of search engine market .33% of total ad spend by the U.S. companies were in digital mode last year and expected to touch level of 45% by 2020. In absolute numbers, a $60-billion market growing to $105-billion, with CAGR of 11.9%.

50% of the total mobile ad spend of the U.S. was with these two players in 2015, and expected to grow to 71 % by 2020, i.e.$54 billion of the $77 billion .