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Report: Google and Facebook account for 70% of Internet ads in Spain

The National Market and Competition Commission (CNMC) set a figure on Monday for the first time in online advertising in Spain, and the result shows the overwhelming dominance of Google and Facebook.

The regulator estimates that US technology companies accounted for about 70% of the online advertising market in 2019, a transfer market of more than 3.45 billion euros in Spain that year. After analyzing these numbers, the National Statistics Center concluded that there is a noticeable concentration in the sector, as well as the problem of lack of transparency, which harms companies and other users, according to the Spanish newspaper, "El Pais".

The newspaper pointed out that “the sector tends to be remarkably concentrated in a very small number of agents, and it is estimated that two companies Google and Facebook (Google and Facebook) can reach more than 70% of the income in the sector in Spain,” the agency adds: “This The numbers are really exceptional, considering it's a market that has emerged in the last 20 years and has no relevant regulatory barriers." 50% of all digital advertising revenue in Spain went to Google in 2019, while Facebook took 20%.

The regulator also reflects the sheer size of the country's online advertising sector, which already exceeds the size of traditional media combined: around 2,000 million euros in television advertising, 700 million in newspapers and magazines, and 500 million in radio. In addition, it sets the annual growth of the online advertising market at between 20% and 25% annually.

Google is by far the company with the highest turnover and market share in online advertising. In 2019, the tech giant collected 90% of advertising revenue in Spain from search engines (so-called search ads), which amounted to just 1.35 billion euros through this channel. Added to this figure is its advertising sales on web pages and applications (display ads), with a turnover of less than 10% of a market of 1,150 million euros, in addition to nearly 300 million more for its mediating role in the sale of display ads. In total, in 2019 Google entered only about 1,900 million in online advertising, according to a study report on competition conditions in the online advertising sector in Spain, from CNMC.

Facebook, for its part, has dominated the web ad market (display) for its ads on the social network of the same name and in its ecosystem of applications, such as Instagram. According to the regulator, Facebook has generated more than 60% of income from display advertising in Spain (700 million), a sector more fragmented than the search engine advertising sector, with YouTube, Amazon, Google and YouTube (Google) monopolizing about 10% of each market. , followed by Twitter, Pinterest, Snapchat, Spotify, LinkedIn, Snapchat and Pinterest (less than 5% each).