The global digital advertising duopoly of Google and Facebook – and the rising cost of advertising that comes with it – threatens online innovation and may precipitate a second tech crash, warns Simon Ryan, CEO of Dentsu Aegis, Australia’s biggest digital media buyer.
“A tech bubble burst is coming and investors will start pulling out of certain tech start-ups because of the money going towards Google and Facebook,” Mr Ryan told The Australian.
According to the internet’s best-known analyst, Mary Meeker, Google and Facebook account for 75% of all new online ad spending in 2015.
“We are now evolving into a space of a post-digital start-up age; the race for scale is over,” he says.
“The ad market is due for correction… we shouldn’t forget the importance of having a media ecosystem that is aligned across more than just two media giants.”