Stratechery Digital Advertising in 2022
Feb 8, 2022
Discover the overwhelming dominance of Google and Facebook in the digital advertising arena and how Apple’s app tracking changes are reshaping the landscape. Explore Amazon's rise through strategic search advertising and its competition with Google. Delve into the implications of Apple’s policies for other platforms, and how they benefit giants like Google over Facebook. Analyze evolving advertising strategies and the shifting balance of power among major players, creating a complex landscape in digital marketing.
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Digital Advertising Landscape Shift
- In 2016, Ben Thompson predicted Google and Facebook would dominate digital advertising.
- This prediction held true for a while, but recent events have shifted the landscape.
Direct Response Advertising Dominance
- Internet advertising, especially on Facebook, is primarily direct response, compressing the customer journey.
- This creates a resilient business model due to measurable ROI and auction-based pricing.
Facebook's Anti-Fragility
- Facebook's auction-based ad system and reliance on internet-native companies create anti-fragility.
- Disruptions to traditional advertisers strengthen the Facebook ecosystem.