4 ms·
> The majority of money spend on ads ends up with content creators Do you happen to have good data on this? I've been wondering how much ends up with various
by bzbarsky 9y ago
> The majority of money spend on ads ends up with content creators
Do you happen to have good data on this? I've been wondering how much ends up with various middlemen (including Google) and how much ends up with content creators.
To put numbers to this, according to https://www.statista.com/statistics/237974/online-advertising-spending-worldwide/ https://www.statista.com/statistics/237974/online-advertisin... about $194 billion was spent on internet advertising in 2016. Google's revenue in 2016 (not all from ads, but mostly) was ~$89 billion according to https://www.statista.com/statistics/266206/googles-annual-global-revenue/ https://www.statista.com/statistics/266206/googles-annual-gl... while Facebook's was ~$27 billion according to https://www.statista.com/statistics/277229/facebooks-annual-revenue-and-net-income/ https://www.statista.com/statistics/277229/facebooks-annual-...
I did check a few other sources and https://investor.fb.com/investor-news/press-release-details/2017/facebook-Reports-Fourth-Quarter-and-Full-Year-2016-Results/default.aspx https://investor.fb.com/investor-news/press-release-details/... gives about the same $27b number for Facebook and https://www.sec.gov/Archives/edgar/data/1652044/000165204418000007/goog10-kq42017.htm#s8EA9B2C52778A3A42DF578DB9C94AC32 https://www.sec.gov/Archives/edgar/data/1652044/000165204418... lists ~$90b total revenues for Alphabet.
Cross-checking the advertising number is harder; I see numbers around $70b for 2016 from the IAB, but maybe those are US-only.
In any case, just the revenue for Facebook and Google is already 60% of the total ad spend if the numbers above are right. And that assumes there are no other middlemen. So I don't see how the content creators can be ending up with anything like a "majority" of the ad spend.
- dgacmu 9y agoSure - when you run ads on your own website with Google, you get 68% of the revenue share. (https://support.google.com/adsense/answer/180195?hl=en https://support.google.com/adsense/answer/180195?hl=en) It's harder to say with forms of advertising like referral links, since many of those are negotiated directly between the website and someone like Amazon, but others go through middlemen that probably take 20-30%, as Google does for AdSense. (source: I run ads, and have referral links, on the Pi Searcher for fun, and to pay the hosting bills. And some coffee money. I get paid by Google part-time, but this is based upon my experience as an ad hoster, nothing else.) But remember that a lot of advertising out there is search advertising (google, bing, baidu, etc.). In which case, Google/Bing/etc. are the content creators -- their content is a search engine -- and they monetize it by advertising.