For the past couple of years, Amazon, Apple, Facebook, and Google have dominated the internet advertising industry. It can be argued that these four companies have launched a digital revolution that has altered peoples’ lives. Although they did not start as advertising platforms, they have evolved to the point where advertising is the primary source of their revenues. Coupled with the emergence of mobile devices, they will also continue to dominate the digital space for the coming years. Each has its unique characteristics that enable it to compete with the others in digital advertising.
Competition between the Four Internet Giants
Amazon’s core strength is its retail business. Other sources of revenue for the company include fees for web services it offers to other companies, Amazon media, and credit card payments. However, general merchandise accounts for more than half of its revenue, which means that the core strength that enables Amazon to compete is e-retailing.
The entry of Google into the digital space altered how people access digital content. At first, the company was just a search engine that generated its revenue by displaying ads. However, it has grown by acquiring strategic assets that enable it to offer digital content and advertising to a wider audience. It has also diversified its operations to include licensing of Android operating system, Google Play, and Google Wallet. Google play is a direct competitor of Apple’s iTunes store.
As a device maker, Apple depends mainly on the marketability of its devices such as the iPad and iPhone. However, it competitiveness came from its ability to integrate its devices with the internet seamlessly. Its smartphone applications and iOS operating system are some of the company’s key products that offer it a competitive advantage.
The entry of Facebook was a significant development in the digital revolution since it is a social media platform that generated its revenue by linking people together. Advertising is the core source of income for Facebook because advertisers can use influencers’ pages to advertise their products.
Although Facebook was the latest player to enter the internet advertising industry, it poses a serious threat to established players such as Google, Amazon and Apple. This is because Facebook has transformed how people interact online. Additionally, the short duration of time between people visiting Facebook and showing interest in an ad is short; therefore, these ads perform better compared to retargeted ads.