With media sales of over 60 billion dollars, Alphabet outperforms its nearest rival Walt Disney by 166 percent. Alphabet has managed to outpace Disney more and more in recent years: In the previous year, Alphabet was 136 percent larger, up 21 percent on the previous year.
The Top Thirty Global Media Owners report provides a unique ranking of the world's largest media companies as measured by Zenith's estimated media revenue. First published in 2007, Zenith defines media revenue as all revenue from businesses that support advertising and uses this definition to determine which companies are the most important to the marketing industry*.
The giants among the 30 largest media owners - Facebook, Baidu, Yahoo and Microsoft - all improved their ranking position this year. Facebook moved up from 10th place last year to 5th place this year. Baidu overtook its competitors and moved up to 9th place (14th last year). Yahoo improved from 18th to 15th place, Microsoft from 21st to 17th place. Facebook proved to be the fastest growing owner among the top 30 with an increase in media revenues of 65% compared to the previous year. Baidu was the second fastest growing company with 52% and Alphabet was in third place with an increase of 17%.
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Rank
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Media owner
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Rank
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Media owner
|
|
1
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Alphabet
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16
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Time Warner
|
|
2
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The Walt Disney Company
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17
|
Microsoft
|
|
3
|
Comcast
|
18
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Asahi Shimbun Company
|
|
4
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21st Century Fox
|
19
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CCTV
|
|
5
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Facebook
|
20
|
Hearst Corporation
|
|
6
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Bertelsmann
|
21
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JC Decaux
|
|
7
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Viacom
|
22
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Axel Springer
|
|
8
|
CBS Corporation
|
23
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Mediaset
|
|
9
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Baidu
|
24
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ITV plc
|
|
10
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News Corporation
|
25
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Fuji Media Holdings
|
|
11
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Advance Publications
|
26
|
Hubert Burda Media
|
|
12
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iHeartMedia Inc.
|
27
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Gannett
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|
13
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Discovery Communications
|
28
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ProSiebenSat.1
|
|
14
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Grupo Globo
|
29
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Yomiuri Shimbun Holdings
|
|
15
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Yahoo
|
30
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Time Inc.
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In total, the five digital giants generated 88 billion dollars in media revenue - that is 34 percent of the total revenue generated by the top 30 companies, representing 65 percent of the total global online advertising market. As these five companies collectively dominate digital advertising, they owe much of their growth to the rapid expansion of this sector. Spending on digital advertising has been growing by 18 percent annually for the past five years. This is due to the proliferation of mobile technologies, the rise of social media and online video, and improved advertising technologies such as programmatic media buying and real-time local search. In contrast, spending on advertising in all media has grown by just 0.6% annually.
Faced with stagnating sales in their core business, the owners of traditional media invested in their digital activities by either expanding the digital components of their existing brands or developing new, independent digital products. This was particularly evident among newspaper and magazine publishers, who suffered from a long-term decline in demand for their print products. Most media owners had to realize that competition on the internet is much more intense than in their non-digital markets, as the barriers to entry are low and there are no distribution costs.
Strong competition and the dominance of the digital giants are making it difficult for many media owners to replace lost revenue from their traditional business areas with new income from the digital sector. Almost half of the top 30 media owners saw their media revenues fall compared to the previous year, but in two cases this was because they sold off part of their media activities. Time Warner spun off its magazine division Time Inc. as an independent company and started as number 30 when it entered the market, while CBS Corporation withdrew completely from the outdoor advertising business.
"The five major digital media owners control the majority of the international internet advertising market, the rapid growth of which has catapulted them into the upper echelons of the largest media owners," says Frank-Peter Lortz, CEO Publicis Media DACH. "The traditional media owners in our top 30 are struggling to grow their own digital businesses, but with varying degrees of success. As digital advertising technology such as programmatic buying moves into other media types, it will continue to disrupt the business of traditional media owners, but also open up new growth opportunities for them."
* Definition of media salesZenith defines media revenues as the total revenues from business areas that support advertising, such as TV advertising, newspaper publishing, internet search, social media, etc. This includes not only advertising revenue, but also revenue generated by these businesses, such as circulation revenue from newspapers or magazines. This paints a clear picture of the size and negotiating power of the largest global media owners that advertisers and agencies have to deal with. The report covers the 2014 financial year, the last year for which we have consistent revenue figures for all listed companies.