Eseandre Mordi
⬤ Artificial intelligence is turbocharging consolidation in digital advertising, making Google, Meta, and Amazon even more dominant. AI creates a powerful cycle: it boosts user engagement, collects more data, and delivers ads that feel increasingly relevant. This loop gives these platforms a massive commercial advantage that keeps growing.
⬤ Regulators are watching closely. Some policymakers are considering taxes or rules to address platform concentration, potentially targeting data practices or large-platform revenues. But analysts worry these measures could backfire—smaller ad-tech companies might collapse under new compliance costs, while talented professionals flee to the tech giants who can absorb the burden. With AI already amplifying market power, poorly designed regulations might actually speed up consolidation instead of slowing it down.
⬤ The numbers tell the story. Madison & Wall forecasts that Meta, Google, and Amazon will control over 56% of U.S. ad spending in 2025, up from about 51% just two years earlier. AI-driven ad optimization is the main engine behind this surge. The technology has become one of the most direct and powerful commercial catalysts these platforms have ever seen.
⬤ Industry experts are taking notice. Media analyst Michael Nathanson points out that even though AI is still early-stage, it's already pushing ad growth for these platforms to levels we've never seen before. The transformation is happening faster than anyone expected, and investor confidence reflects this reality.
Eseandre Mordi
