In the advertising world, the bigger they are, the more they profit. As the ad market experiences a resurgence in 2024, it is the trillion-dollar companies that are reaping the lion's share of the rewards while legacy media and smaller players struggle to keep up. According to forecasts by Insider Intelligence, Google and Meta, the top two digital ads market leaders, are set to collectively generate over $140 billion this year, accounting for nearly half of all digital ads revenue.

While brands are increasing their ad expenditures to overcome a multiyear slump, it is the mega enterprises that are feasting on the rebound, leaving everyone else to scrap for crumbs. This was evident when investors penalized Snap for posting only a 5% revenue growth, highlighting Wall Street's preference for Zuckerbergian conquests. Meta set an impressive bar for expansion, skyrocketing its advertising revenue by 24%, more than double the growth rate of rival Google's 11%. Even Google faced criticism from Wall Street for its performance.

The allocation of ad dollars highlights the selective nature of this recovery. Amazon, currently ranking third in the digital ads market, reported a remarkable 27% year-over-year increase in its ads business. With plans to convert its untapped Prime Video streaming service into an ad platform, Amazon is poised to capture an even larger share of the market. The company's built-in audience and the allure of watching and buying on the same platform give it a considerable advantage.

According to data, worldwide digital ad spending is projected to grow by 13.2% this year, dwarfing the modest 2.4% growth of traditional media ad spending. Other major players expected to amplify their ads business, such as Walmart and TikTok, are following a similar playbook, capitalizing on their vast online ecosystems to capture a larger audience.

The challenges faced by smaller players are compounded by the fact that these tech giants, who disrupted the ads business with search and social media, are now using their enormous cash reserves to invest in AI tools. This strategic move is poised to further tilt markets and the attention economy in their favor, making it even harder for competitors to keep up.

Even media giants like Disney and Fox are not immune to the struggles of the legacy media model. Disney, despite impressive earnings and dividend boosts, reported a 12% decline in its linear networks segment compared to the same period last year, with operating income falling by 7%. Meanwhile, Fox's ad revenue, which constitutes nearly half of its total sales, dropped by 20% in the December quarter.

Other media companies, including Warner Bros. Discovery and Paramount, are expected to announce their financial results later this month. However, without the advantage of Bob Iger's streaming head start and dealmaking expertise, these companies are likely to face similar challenges with their ad-reliant finances.

In conclusion, the ad market rebound of 2024 is being mostly enjoyed by the tech giants, leaving legacy media and smaller players struggling to compete. With their vast resources and dominance in the digital ads market, companies like Google, Meta, Amazon, and others are reshaping the landscape of advertising, while the rest scramble to find their place in an increasingly uneven playing field.