Say it with us – REGULATION, MORE OFTEN THAN NOT, SERVES THE BIG COMPANIES WHILE PUNISHING THE SMALL ONES. (The emerging competitors.)
A classic form of crony capitalism.
“The elimination of third parties is smart strategically,” Morgan Stanley analysts said this week. They expect no “material reduction” in spending on Facebook and, over time, the company will net more ad dollars by avoiding industry middlemen.
For years, advertisers grumbled about the “walled gardens” of internet giants — digital barriers Google and Facebook maintain to prevent outsiders from accessing user data while limiting their ability to independently measure and track ad effectiveness. Recently, the companies — which control 87% of digital advertising — have listened, granting more access. But this opening up could stop now.
“Facebook is raising the walls around its garden,” Morgan Stanley’s Brian Nowak wrote. “The two largest online ad platforms will now be more aligned, focusing on their first-party data offerings and tool sets, which we expect to enable Facebook and Google to continue to drive 90%+ of the online ad market.”