Tech companies have struggled to make a dent in the market for internet advertising despite massive investments.
The market for ad inventory on the web is expected to reach $1 trillion in 2018, according to a report released Monday.
But the number of web pages that run ads is still a fraction of what it was in 2010, when Google launched its Google AdWords service.
And while many of those pages have gotten bigger over the years, Google still trails rivals like Facebook and Microsoft in terms of revenue per click, according the study.
“Ads are a major source of revenue for most tech companies, but Google still has some serious competition in the advertising space,” Robert Heilman, a principal analyst at Strategy Analytics, told Recode.
“While Google’s ad business is growing, it’s also slowing down.
Google has spent a lot of money to create a global network of Google ad networks, but its ad revenues have fallen by more than a third in the past few years.”
And while Google’s search engine dominates search results, it still has a lot to learn from competitors like Bing and Yahoo.
Google’s ads have remained static, which has made it hard for other ad companies to compete.
“We think it’s going to continue to evolve into a much more dynamic and competitive industry. “
This is what the industry was built on, and the internet has changed a lot in the last few years,” he said.
But Google is not going to be able to sustain its growth, especially with a $1 billion market cap.”