Google’s global digital media revenue share fell 2.7% in Q2 2020, hitting a six-year low

While Google remains the world’s largest digital media company, its digital media revenue fell 7% in Q2 2020 to $38.3 billion, causing its market share to drop from 29% in Q1 2020 to 26.3% in Q2, a six-year low. Google has been a strong performer in travel and leisure advertising, but its market size has fallen due to changes in consumer behavior brought about by the new crown epidemic. Facebook remains the world’s second-largest market player with a Q2 share of 12.8%; while Apple’s revenue share has fallen to 9%, it remains in third place. Alibaba, the world’s fourth-largest digital media company, saw its share rise to 8.4% in Q2, helped by China’s economic recovery.

The report also found that, as the global economy gradually began to recover from the early effects of the COVID-19 pandemic, total global digital media revenue achieved a modest quarterly increase of 2.8% in Q2 2020, reaching $145.7 billion, an increase of nearly 12% over the same period last year. %. The strongest digital media segment was online gaming, where Q2 earnings rose 12.9% over Q1. Digital music revenue fell 11.4% due to less time listening to streaming music in Q2. Online video revenue rose 2.8%, while digital ad revenue was largely flat.

Michael Goodman, Director of Strategy Analytics’ TV and Media Strategies Service and report author, said: “The digital media industry has been impacted by COVID-19 in different ways, depending on market segment and geography. China’s recovery in Q2 shows that companies like Google’s Western companies could see a similar rebound for the rest of 2020, but there is clearly a lot of uncertainty. Companies focused on entertainment sectors such as video and gaming have seen excellent earnings growth recently, and there are good reasons to expect that This trend will continue for the rest of the year.”

Methodology

The analysis is based on Strategy Analytics’ Digital Media Index (DMI), which has spent the past 15 years analyzing quarterly digital media revenue trends for the world’s 44 largest public companies in gaming, video, music, social media and digital advertising. Earnings numbers are based on quarterly earnings and other public statements, as well as Strategy Analytics’ estimates of market and corporate sector earnings. Analysis includes digital (internet) earnings only, not traditional media segments.

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