Duopoly indeed. New estimates from WARC suggest that 6 in every $10 spent globally on digital advertising this year will go to one of two companies: Google or Facebook. At 44% and 18% share of all global online ad spending this year, respectively, these two companies are continuing to expand their dominance of the growing online ad market.
Their combined 61% share of global online advertising revenues is up from 58% last year and 47% in 2012.
The duopoly’s massive position in the global online advertising market – and that market’s expanding influence in total ad spending – means that they’re major players in the global media ad spend world.
Together, Google and Facebook will account for fully one-quarter of all global media ad spending this year, estimates WARC. That’s up from 20% last year – a figure supported by Zenith estimates – and from just 9.4% in 2012.
Google alone is expected to take home 18% share of all global media ad spending, while Facebook will capture 7% share.
WARC notes that while Google’s ad revenues outpace Facebook’s by a roughly 2.5:1 margin, Facebook’s ad revenues are growing at more than twice the rate of the global online ad market. Google’s ad revenue growth is more on par with that average.
For the time being, Google maintains the advantage in audience monetization, per estimates from Ampere Analysis. In the fourth quarter of 2016, Ampere estimates that Google raked in almost $7 ($6.70) per monthly active user from advertising on its sites. Facebook’s not too far behind, though – and it’s sporting much faster growth. With $4.70 per monthly active user in advertising revenue in Q4 2016, Facebook has more than doubled – from $2.30 – its Q1 2015 average revenue per user (ARPU).
Move Aside Desktop. It’s Mobile’s Turn.
Another headline finding from WARC? Mobile ad spending has finally exceeded desktop ad spending across the 12 markets monitored by WARC, which combined make up two-thirds of global ad spend. With an expected year-over-year growth rate of 35.2%, mobile ad spend should represent almost one-quarter (23%) of those markets’ ad spending by the end of this year.
Zenith also recently predicted that mobile devices will this year for the first time account for a majority (53%) of digital ad spend across the 52 markets it tracks.
A slight majority (51%) of mobile ad spend will go to search this year, according to WARC, with 45% allocated to display and 4% to classified and other formats.
Mobile gained primacy in US digital advertising last year, per the IAB and PwC. If one forecast – from MAGNA – holds true, mobile will account for half of all US ad spending by 2022.
TV remains the single largest medium for now, according to WARC. With its ad revenues across those key markets estimated to be roughly 40% higher than mobile ad revenues, it’s expected to account for close to one-third of all global ad spending.