Tech Giants Take Over U. S. Ads: What's Next for TV?

The U. S. advertising scene has seen a huge shift in the last ten years. Five tech giants now control most of the market. These companies are Meta Platforms, Amazon, Microsoft, Alphabet (Google's parent company), and ByteDance (which owns TikTok). Back in the day, these five only had a small part of the pie. But now, they're expected to grab a whopping 65% of the market this year. That's a big deal! So, what's happening with the rest of the market? It's shrinking. The report says the total U. S. ad market will grow, but not because of traditional media. TV ads are taking a hit. Cable TV ads are down by 8%, and broadcast ads are down by 9%. That's a loss of $4 billion for linear TV. But don't worry, ad-supported streaming is picking up some of that slack, gaining about $2 billion. Why is this happening? Well, people are spending more time online, and these tech companies are great at targeting ads. They know what you like, and they show you ads that fit. This is where AI comes in. It's changing the game, making ads more effective and engaging. But what about TV? It's not all doom and gloom. There's a push to bring in big names like MrBeast to attract advertisers. And new formats like microdramas are gaining traction. Companies like TelevisaUnivision and Telemundo are jumping on this trend, hoping to lure back some of those advertising dollars. So, what's the big picture? Traditional media is struggling, while digital channels are thriving. It's a shift that's been coming for years, and it's clear that the future of advertising is digital. But will TV make a comeback? Or will it continue to lose ground to online platforms? Only time will tell.