Google remains the Goliath in Internet advertising. But there are signs of weakness, at least with some on Wall Street.
Stifel Nicolaus analyst Jordan Rohan’s assertion that “the center of gravity on the Internet is shifting from Google to Facebook.” Rohan stated that there is “a CMO-level push to keep growth in search budgets low in 2012, while shifting spend to social and display.” Facebook is predicted to continue as a formidable challenger in display, while “distractions”, like Google’s social, local and mobile investments threaten to diminish its market share.
Citigroup analyst Mark S. Mahaney in an interview with AllThingsD stated that Yahoo and AOL reported lower display revenue in the second quarter, “which could be signs of increased competition from ad networks and social media for premium ad dollars.” That means that greater competition in the display may be impacting the potential value investors can derive from their investments, at least in the eyes of analysts. This competitive market might be good for marketers, as companies have to fight for advertising dollars, but it makes investors nervous.
More in Media
The case for and against agentic media buying
Agentic media buying promises a reinvention of the programmatic ecosystem, but experts are divided on whether it could help – or hinder – accountability.
Inside Expedia’s year-long partnership with mega creator IShowSpeed
Expedia partnered with mega creator IShowSpeed on a record-setting livestream and year-long campaign to target Gen Z audiences.
Mega creators find that their personalities alone aren’t scalable as standalone businesses
Successful creators like Alex Cooper or MrBeast are creating media companies, to varying degrees of success and struggle.