Advertising Landscape

The competition for online advertising is dominated by three companies. Google and Meta (Facebook and Instagram) are established players but Amazon has really burst onto the scene in the last two years.

Take a look at the image below from our friends at App Economy Insights, which compares the advertising revenues of these three giants. Google is still the dominant player and manages to maintain that position through the seasonal cycles. But Amazon has more than doubled their advertising revenues since Q3 of 2020.

All three have shown tremendous growth recently but you can see the overall slowdown, especially for Google and Meta when comparing Q4 of 2021 to Q4 of 2022. The macro environment has changed a lot.

Clearly we like this theme and we own all three stocks in our Vestact portfolios.