The Fall Of Ad Giants? Here's What You Need To Know As Fashion Prepares For A Digital Shift
Living in a world where online ads shape what we buy, where we shop, and which brands we remember, the dominance of tech giants like Google and Meta has long seemed unshakable.
But with US government antitrust lawsuits looming, the digital ad sphere may be heading for a seismic shift—one that could upend how fashion brands reach their customers.
The digital advertising world has always been dynamic, but it’s now facing a level of uncertainty that could permanently alter the way brands do business online.
On April 17, a federal judge ruled that Google holds an illegal monopoly over the online ad technology sector.
At the same time, Meta (the parent company of Facebook and Instagram) is in court over its 2012 acquisition of Instagram, an acquisition the Federal Trade Commission (FTC) now argues was intended to suppress competition.
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If these cases succeed, the consequences will be far-reaching. Google may be forced to open up its advertising tech to competitors, while Meta could be ordered to sell Instagram.
The fashion and e-commerce industries are watching closely because the way they advertise and connect with consumers is at stake.
At its core, the US government’s argument says that Google and Meta have too much power. By controlling major chunks of the ad tech infrastructure and social media space, these companies can essentially dictate how much advertisers pay and what tools they use.
In Google’s case, that dominance began to solidify after its 2008 acquisition of DoubleClick, a startup that helped companies buy and sell online ads. Since then, Google has used its technology to control both sides of the advertising transaction, something the Department of Justice claims is anti-competitive.
In response, Google says it’s simply offering tools that are effective and easy to use, and that advertisers and publishers choose Google voluntarily.
Meta, on the other hand, is being challenged for its acquisition of Instagram. The FTC argues that Meta’s control over both Facebook and Instagram allows it to squash competition and dominate the market.
If Meta is forced to sell Instagram, the ability for brands to access data across both platforms—and run joint campaigns could be significantly disrupted.
For many advertisers, these legal battles echo another industry-shaking change: Apple’s 2021 decision to introduce new privacy settings in iOS 14.
That update allowed users to opt out of tracking across apps, which made it much harder for brands to serve personalised ads.
Fashion brands, especially those in fast fashion or direct-to-consumer spaces, have leaned heavily on Google and Meta for growth.
These platforms not only offer massive reach but also enable pinpoint targeting. Typically, brands use Meta (via Facebook and Instagram) to build awareness and use Google ads to capture customers actively looking to buy.
But this space is getting more crowded and more expensive. With brands like Shein and Temu pouring money into ads, the cost of advertising has shot up. According to marketing agency Belardi Wong, Meta’s cost per thousand impressions has risen by 13% since early 2024.
If Meta and Google lose their grip, it could open the door to more competition. That could lower ad costs—but it could also fragment the market, making it harder to find large audiences in one place.
The threat of disruption is already pushing brands to explore alternative channels. Pinterest and Snapchat, though smaller, are gaining traction. Pinterest made $2.7 billion in ad revenue in 2024, while Snapchat earned $2.1 billion, according to eMarketer.
Then there’s TikTok. In 2024, its US ad revenue soared to $12 billion, boosted by the success of TikTok Shop. But TikTok itself faces uncertainty due to potential U.S. bans if it doesn’t sell to an American company.
Amid all this, some large advertisers are pulling back. Between March 31 and April 13, Temu reduced ad spending across platforms like Meta, TikTok, and YouTube by 31%, while Shein cut its ad budget by 19%, according to Sensor Tower. This has temporarily brought ad prices down, giving smaller brands a window to test new platforms.
There’s also another player in this ad drama: retail marketplaces. Companies like Amazon, Walmart, and Target are becoming ad giants in their own right.
In 2024, Amazon’s ad revenue grew 18% to $40 billion, while Walmart hit $3.9 billion and Target pulled in $649 million.
These platforms offer advertisers unique advantages, especially fashion and beauty brands, by linking ads directly to product pages.
More brands are using these networks not just to advertise, but to fend off counterfeit and unauthorised sellers.
For fashion marketers, the pressure is mounting. Tariffs, inflation, shifting consumer habits, and now legal action against the biggest platforms they rely on all combine into one message: be ready to adapt.
Whether or not the US government succeeds in its cases against Google and Meta, the ripple effects are already spreading.
(With inputs from BOF)
