Small business concept.

 

In light of Facebook’s whopping earnings report last Wednesday, one can likely believe Morgan Stanley analyst Brian Nowak’s recent estimate that Google and Facebook together are taking 85 cents of every new dollar spent on digital advertising in the US.

Here’s what Nowak was quoted as saying in The New York Times. His calculation may be contested, but one thing is for sure — together, this leading pair are pulling about $25 billion per quarter in advertising revenue.

The most intriguing dynamic is not the shadow they cast over everyone else, but the race between the two to take on Madison Avenue. While the search site is making four times more money from ads than the social network, I believe big changes are afoot that put more of the cards in Mark Zuckerberg’s hands.

In February, Google rolled out a dramatic change to remove all ads, except for Google Shopping products, from the right rail of its search results pages on desktops, bringing it in line with its mobile appearance


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Source: Street Fight