Tag Archive big tech

Countervailing the Facebook – Google Duopoly (forthcoming)

Lawrence Abrams No Comments

This paper will lay out the requirements for a company with an digital ad demand-side platform (DSP) to be large enough and astute enough to countervail the Facebook – Google duopoly in digital ad supply-side platform (SSP).

We will start with a review of the Galbreath – Stigler debate over the value of an intermediate market countervailing power, mentioning our contribution to the debate: “Business models matter”  See our 2007 article Pharmacy Benefit Managers as Conflicted Countervailing Powers

There are article highlight the prospects for (SSP) competitors to Facebook – Google:

WSJ: The Race is on to Challenge the Google – Facebook Duopoly – June 2017

Buzzfeed: The Campaign Against the Facebook – Google Duopoly is Going Nowhere – August 2017

“For well over a year now, the digital advertising and publishing industries have grappled with the growing power of Google and Facebook, which suck up 98% of every new ad dollar spent online, according to some estimates. With so much growth and power concentrated in just two companies, publishers worry about the viability of their ad businesses, while advertisers bemoan their loss of leverage around ad buys.

Deeply unsettled by the idea of a Google-Facebook duopoly, both groups have done what they can to defend against it. But so far, nothing they’ve done seems to have worked. Google and Facebook both turned in mammoth financials in the first half of 2017, and are on track to account for 64.6% of digital ad dollars spent in the US this year, according to eMarketer.”


Madison Avenue & 50th looking south 1941