Google And Facebook Tighten Grip On The Digital Ad Market
The digital ad ecosystem’s so-called “duopoly” is now expected to rake in combined 63.1% of US digital ad investment, up from eMarketer’s previous prediction that the duo’s total would reach 60.4 percent in 2017. Advertisers are increasingly demanding more granularity in targeting capabilities to reach consumers. Google and Facebook have positioned themselves at the front of this demand curve by being the ad publishers with a few of the finest in class targeting capabilities in the digital media market.
With Facebook having the ability to provide targeting based upon consumer interests and Google capitalizing on where these consumers have been through searches, both companies ensure their lead among digital advertising publishers. This year, Google will garner $35.00 billion in total digital ad dollars in the United States, up 18.9% over last year. That expansion will push Google’s share of the US digital ad market to 42.2%, slightly higher than eMarketer had predicted in Q1. In 2017, for the very first time, mobile will represent more than half of Google’s total US ad revenue for the year, with advertisements served to mobile phones and tablets up 28.6% year over year to $18.90 billion.
The total digital revenues of Facebook in the United States will grow 40.4 percent to $17.37 billion, pushing its share of the US digital ad business to 20.9%. Furthermore, Facebook will take in $15.28 billion in mobile ad revenues this year, equal to 88% of the company’s total ad business and enough to push Facebook’s share of the US mobile ad market to 26.8%. Facebook-owned Instagram’s mobile revenues will grow 90.7% year over year to reach $3.08 billion in 2017.
Overall, Snapchat will see 1.1% of the US mobile ad market share in 2017, slightly beneath the 1.3% eMarketer predicted in Q1, and 0.8% of the US digital ad market overall. The US still accounts for a substantial majority of ads revenue, 83% this year, as Snapchat was slow to add users in international markets. Snapchat’s ad revenues are slowing down even though in August eMarketer predicted that there’d be more US teenagers on Snapchat this year than on Facebook or Instagram, after adjusting our Snapchat usage estimates higher. Many advertisers remain skeptical, but Snapchat’s ad products are disturbing to some due to their creative capacities and the social network’s youthful, extremely engaged user base.
Twitter’s total US ad revenue will fall this year by 10.8%, to $1.21 billion. Consequently, its share of the US digital ad market will fall to 1.5%, down from 1.9% last year. This year, revenue from mobile ads in the US on Twitter will drop by 10.3% to $1.08 billion. Therefore, Twitter’s share of the US mobile ad market will slip 1.8%, down from 2.6% last year.
If you’re a digital marketer or a search engine optimizer, it’s important to understand the advertising trends of each social media marketing platform and where your clients can benefit from the most audience reach.
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