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State of the Screens

Do Big Advertisers Even Matter to the Platforms?

By March 5, 2018No Comments

Another major advertiser (Unilever) has threatened to pull advertising $ from Facebook/Google, but does it matter?

Last year. Proctor and Gamble announced the same thing and eventually reduced their spend by ≈ $140M.

Drop in the bucket. Since the P&G announcement Google grew their ad revenues by 20% or $16B! The revenue that P&G pulled from Google accounted for 0.15% of their total ad revenue.

Google ad revenue by year:
1) 2016 — $79.4B
2) 2017 — $95.4B

How is this possible? Scale!

Advertisers on Facebook by year (% growth):
1) 2016–3M
2) 2017–5M (↑ 67%)

The major platforms are able to grow revenue despite losing marquee clients such as P&G.

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.