Exclusive extracts from this 69-page-long report:
- Who are the key players?
Internet companies provide digital products and services in order to connect Internet users with advertising customers through their websites, platforms, applications and other properties. US internet companies have come to dominate the global web in terms of revenues as well as worldwide users, building on their strong innovative power, large financial clout, and first-mover advantages in many foreign markets. [...]
Groups analysed in this report include: Alphabet (Google), Facebook, Tencent, Baidu, Yahoo, IAC/Interactive Corp, LinkedIn, Twitter, Yandex, and Sina Weibo.
- What are the players' strategies?
Major internet companies' strategies continue to be tailored around increasing user traffic on their web properties in order to gain a greater share of the digital ad market. Product development and targeted acquisitions are crucial to preserve the attractiveness of their web properties in the eyes of developers and increasingly sceptical online advertisers. A strong focus on mobile platforms has also become vital to attract global internet users, who increasingly access the web via mobile devices. […]
- What are the players' key growth and profitability drivers?
With online advertising remaining by far the industry's main income and profitability source, Internet companies are stepping up efforts to broaden and diversify their revenue streams as a hedge against volatile online ad spending and intensifying competition. Google for instance derived roughly 88% of its income from online advertising in 2016 (compared to more than 97% in 2010) as it has been diversifying its business away from digital advertising by investing in new projects including hardware (smartphones, TV streaming device, virtual reality headset) and software (cloud services, application sales, intellectual property). [...]