World’s biggest tech platforms are also massive investors in adspend

By our News Team | 2022

Big tech businesses have moved from being ad-investment sceptics, to ranking among the globe’s biggest-spending advertisers.

The eight biggest technology platforms in the world accounted for six percent of all advertising spending globally during 2021. In all, the likes of Amazon, Alibaba and Meta spent a whopping US46.6-billion on ads.

This is according to a new WARC study entitled ‘Big Tech’s Growing Share of the Post-Covid Ad Economy’, which finds the tech-platform sector’s spend on advertising is growing faster (+49.4%) than categories such as media and publishing (+34%), technology and electronics (+26%) and retail (+21%).

Last year, Amazon invested $16.9-billion in ads (up by 55.0% year-on-year), which equates to the most ever spent by a single company over a 12-month period.

At number two in the big-spending stakes is Alibaba, which invested $8.8-billion in 2021, a rise of more than 84%. In doing so, Alibaba has grown its share of total adspend in the category from 2.9% in 2014 to 19% in 2021.

Advertising Spending

Photo by Preis_King on Pixabay

Alibaba’s adspend is now ahead of Alphabet

For the first time, Alibaba now beats Google-owner Alphabet in total ad investment. For its part, Alphabet spent $7.9-billion, an increase of 47%.

Among the businesses analysed in the study, Microsoft is the company with the least commitment to advertising. It spent $1.5-billion last year – a figure that has remained largely unchanged in six years.

WARC Media’s Alex Brownsell, who is author of the report, said: “Big tech businesses have come a long way from being ad investment sceptics, to ranking among the biggest-spending advertisers in the world. As their dominance of the mobile-first digital commerce marketplace increases, so too their share of total global ad spend is likely to grow.

“It underscores that, while digitally-native brands can succeed in the short-term without the support of ad spend, long-term success often depends upon a willingness to invest in performance-enhancing and brand-building advertising.”

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.