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TikTok Doubles Share Of Ad Spend, AdTech Consolidation Hits 29%

TikTok Doubles Share Of Ad Spend, AdTech Consolidation Hits 29%

Ad networks are the middlemen between advertisers and publishers who have a lot of advertising inventory to fill. Unsurprisingly, the top 25 ad networks dominate the majority of ad spend in mobile advertising.

TikTok was an outlier, growing its share of spend by twice as much as the second-fastest growing network, Apple Search Ads. TikTok had nearly 6% of total mobile advertising spend by the end of 2020, up from just over 3% a year earlier, according to new data from AppsFlyer. Meanwhile, Facebook dropped about 4% to about 28%.

The field is getting more concentrated as smaller players fall by the wayside. In 2019, there were more than 350 significant ad networks and platforms. By the end of last year, that number was down to 245. Some 25% of that drop came in the last quarter alone.

Mobile marketing platform AppLovin saw its share of spending grow the most among ad networks that didn’t sell their inventory directly through auctions, like TikTok and Facebook. Meanwhile, other non-auction players like Yahoo saw declines in their share of spending.

It’s not surprising to see fewer companies jockeying for position in a fast-growing market–especially as people shifted their attention to mobile devices during the pandemic lockdowns. Overall consolidation in mobile ad tech seems to be continuing over time as a small group of players continues to dominate adsense, particularly in auctions.