The world’s biggest online companies are trying to outsmart rivals like Google and Facebook in an effort to sell themselves and their businesses, analysts say.
They are also betting that they can tap into a market that is growing exponentially, with the growth of mobile phones, tablets and cloud computing.
The challenge is that many of the companies that make up the market have already gone through a major disruption, such as Facebook’s purchase of Instagram in 2014.
They have been forced to innovate or lose customers.
The companies are also trying to convince their peers that they are the only ones who are doing what they say they are doing, said Scott Wojcicki, senior vice president of research at research firm Strategy Analytics.
“It’s not going to be easy, but it’s not a bad idea,” he said.
“There’s a lot of value that can be created for companies that are willing to take risks and invest in innovation.”
In addition to Google, which is already showing signs of a pivot, several other companies have tried to capture the attention of investors, according to research firm eMarketer.
Apple Inc., which has a $1 trillion market cap, is a big beneficiary of the market’s rapid growth, according the eMarketers report.
Amazon.com Inc. and Microsoft Corp. are among the biggest growth companies.
Amazon’s revenue grew 25% in the first quarter of this year, while Microsoft’s surged 19%.
Other companies have started selling advertising.
LinkedIn Inc., a company that helps people share online information, has been one of the most vocal investors in the industry.
Amazon has also invested heavily in the social network, building its advertising business around ads on the site.
LinkedIn says it has made $100 million in revenue from ads that it says are shared on the platform.
“The business is really starting to take off,” said John McCarthy, senior director of consumer insights at eMarkets.
“We see a lot more and more people who are getting connected and connecting with their friends on LinkedIn, on Facebook and on Twitter.”
The growing demand for social media is also a factor, as it makes it easier for people to share content with one another, said Brian O’Neill, chief market strategist at eTurbo Analytics.
The social media boom also is a boon for the advertising industry, which has seen its revenue drop in the past two years.
Sales of online advertising fell to $3.65 billion in the second quarter from $5.6 billion in 2014, according eMarketing.
Analysts say the growing demand could mean that advertisers are shifting to more social media platforms like Snapchat and Facebook.
Twitter, meanwhile, is investing heavily in its ad platform, expanding the reach of its ads and introducing new ways to monetize its user base.
It said it would invest $3 billion over the next year in the advertising business.