Ads have dropped for the first time in six years, and social media companies are taking advantage of the new opportunities to boost sales, while advertisers and publishers continue to wrestle with how to stay ahead of competitors.
The drop comes as social media and advertising giant Facebook and internet company Amazon have unveiled new storefronts to compete with Google Inc.’s AdSense program, which has drawn thousands of online shoppers.
Google and Amazon have been using AdSense to promote their own products and services in an effort to make up for dwindling advertising revenues, while Facebook has been forced to shut its AdSense storefronts for more than two years after the program was discontinued.
Advertisers and publishers have been trying to stay competitive as companies try to cut costs amid a rise in online traffic, but advertisers are also concerned about the impact of the programs, which rely on a mix of ads and sponsored posts.
Google said on Tuesday that it would continue to support AdSense as it continues to evolve.
Facebook, meanwhile, has announced it will also continue to use AdSense.
Amazon, meanwhile has shut its storefronts.
Google is using Adsense to promote its own products in an attempt to make it more appealing to online shoppers, and Amazon has been compelled to shut down its storefront in the past.
The companies have tried to get advertisers to use the program to boost the number of ad impressions they get from their users.
Advertising revenue for social media platforms fell 2.7 percent to $8.9 billion in the quarter ended Oct. 31, while ad sales for the year are forecast to grow 9.6 percent, according to Kantar Media’s online advertising tracking unit.
Sales for digital platforms rose 2.5 percent.
The growth in online sales for social networks, which are increasingly popular among younger people, has fueled growing concerns about a shrinking advertising base.
Facebook said last month that its advertisers and readers will now be able to make a single ad purchase, which typically involves clicking on a link, with an AdSense subscription.
The social network will also offer the same level of ads for a larger number of people.
Amazon announced plans in October to offer similar ad purchase options for its own content and advertising.
Ads can be paid for through a variety of different sources, including paid searches, ads displayed on a user’s page, or sponsored posts by third parties.
The ads can also be placed on the user’s news feed, which can serve as a revenue stream for advertisers.
The changes mean that advertisers and their publishers will have to consider the impact AdSense ads can have on online traffic.
Facebook and Google both say AdSense revenue for the quarter was $1.1 billion.
Amazon said it would be allowing its users to buy ads in a variety on its website and on its social network.
Amazon’s social network, Amazon Prime Video, has said it is allowing advertisers to place sponsored ads.
Facebook’s ad sales program for the same period was $867 million, according a Google representative.
Facebook declined to comment on AdSense and other online advertising.
Amazon, Google, Microsoft and Yahoo are the largest online retailers.
Advertisers in the United States are expected to account for about 20 percent of all online ad spending in 2018, according in a survey by Kantar’s online ad tracking unit released Tuesday.
Online advertising revenue is forecast to rise 8.4 percent to more than $8 billion this year.
Ad revenue for online platforms is forecast at $3.9 trillion, according the company’s annual survey.
The market for online advertising and other digital platforms is expected to be $878 billion by 2020, according KPMG’s research.