Are Google and Facebook ads costing more but giving you less each year? Or has advertising online gotten so expensive that you don’t even try? We’ve experienced this and a lot of marketers and business owners are worried about it.
Why is this happening?
More and more businesses are coming online and starting to advertise for the first time. Businesses who are already spending on digital ads are shifting more of their advertising budget towards digital. This means increased competition for the same audience. Marketers and business owners are pitted against each other in bidding wars for the most popular audiences and keywords.
So we have more businesses and bigger budgets competing for the same audience on one side. Then on the other, Google and Facebook have a strategy of tweaking their algorithms to reduce the browser and app real estate available for free organic content. This pushes more business to use their ads and reduces the total amount of free organic exposure available to be shared.
We can see the results of these 2 trends in the sky-rocketing ad revenue growth for Facebook and Google below. Google raked in over $135 billion last year, and Facebook pulled in $70 billion.
Google Ad Revenue 2002 — 2019
Facebook Ad Revenue 2010 — 2019
Is this a problem for your business?
We’ll share the results and you can see how your experience relates to your fellow marketers and business owners in the next update.