Meta and Alphabet lose the advertising throne

It seems the long-held duopoly that rules the $300 billion ad market is coming to an end as tech giants scramble for their piece of the pie. Meta Platform Inc META and Alphabet Inc GOOD lose their dominance to Amazon.com Inc AMZNMicrosoft Corporation MSFT and Apple Inc AAPL.

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According to Insider Intelligence, this will be the first year since 2014 that these two companies will not hold a majority share of the market as their revenue share is expected to fall to 48.4 percent, which will mark their fifth annual decline.

An extremely dynamic market

Jerry Dischler, Google’s advertising director, spoke to the Financial Times about a bitter rivalry between new entrants, along with an antitrust scrutiny owed to US and European regulators.

Google is being prosecuted for allegedly promoting its products to competitors, while Meta is dealing with a complaint that its classifieds service is unfair to competitors.

The problem

Meta CEO Mark Zuckerberg blames Apple’s privacy changes for the decline as they make it harder to track users and target ads. There’s also the fact that newcomers are becoming increasingly popular, with ByeDance’s TikTok being the choice of today’s youth.

Rising costs and inflation aren’t stopping Big Tech

While companies around the world are cutting their advertising budgets in response to rising interest rates and high inflation, tech giants are stepping on the gas. They even join forces like Microsoft and Netflix Inc NFLX which announced back in July that they would be building an ad-supported tier of their streaming service.

An updated store and advertising 101

Until recently, advertising budgets were the first to be cut when recession fears surfaced. But with ad revenue skyrocketing, Big Tech has recognized the importance of advertising and its contribution to the business model as it allows for significantly higher margins. Even Apple defines its…