Do Big Advertisers Even Matter to the Platforms?


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.

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