The already dominant Google Facebook duopoly will tighten its grip on digital ad revenue, a new report by eMarketer estimates, surpassing TV ad spending…
By the end of this year, digital ad spending will reach $83 billion in the United States alone. That’s an increase of 16 percent, according to eMarketer, over last year. It is also the first time online ad revenue will outpace TV ad spending. Mobile will grow to $50 billion or by 32 percent. And, the Google Facebook duopoly will continue to outperform its competitors.
The Google, Facebook Duopoly Forecast to Grow Larger
In 2017, Google will maintain its dominance, capturing 41 percent of digital ad market share spending. This figure is more than twice the size of Facebook, but the social network is experiencing an increase in its display business. Facebook currently claims 39 percent of the U.S. display market, jumping by 32 percent to $16 billion during 2017. Doing so will surely take share away from Google, Twitter, and Yahoo.
“Facebook’s users are increasingly captivated by videos on the platform—not just on Facebook, but on Instagram as well. Video, both live and recorded, is a key driver of growing user engagement and advertiser enthusiasm,” eMarketer states.
For its part, Google’s display business will increase to $5 billion, however, its display market share will fall to just 12 percent. Although, Google will fetch about 78 percent of all U.S. search ad spending this year.
Facebook owned Instagram will account for 20 percent of its parent company’s mobile revenue this year, up from 15 percent. Meanwhile, Twitter has stalled completely, leading to a 5 percent decline in ad revenue.
Forecasts place Snapchat on a growth route for this year. For 2017, ad revenue for the app will rise to $770 million in the United States, an impressive 158 percent gain. The company will account for 1 percent of the U.S. mobile market and grow to 3 percent by 2019.
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