Digital advertising spend in the US is predicted to reach $83 billion this year. That’s an increase of almost 16%, according to research firm eMarketer.
Much of that spend is going towards Google which will account for 40.7% of US digital advertising revenues this year – double of what Facebook makes.
Google’s dominance is boosted by search spend which is set to increase 16.1% to $28.55 billion in 2017, generating a total 78% of the whole of US search advertising expenditure in 2017.
Monica Peart, a forecasting agent at eMarketer, explained:
“Google’s dominance in search, especially mobile search, is largely coming from the growing tendency of consumers to turn to their smartphones to look up everything from the details of a product to directions. Google and mobile search as a whole will continue to benefit from this behavioral shift.”
It seems that despite the popular Snapchat ad format and pressure from Twitter, Google and Facebook continue to lead.
Indeed, Facebook’s display business is forecast to grow from 32.1% to $16.33 billion this year, increasing to a 39.1% market share.
eMarketer says that much of the boost can be linked to a rise in usage and time spent among the social platform’s users. Advertisers tend to go where they can reach the most amount of users.
Instagram has also proven to be a worthy purchase for Facebook, making up 20% of the social giant’s US mobile revenue, up 5% from 2016.
Given this phenomenal growth, something has to give and Google’s display business is set to drop to 12.5% at $5.24 billion.
Peart adds that video has been a real boon to Facebook with user time being effectively captured. Indeed, live and recorded videos are a strong driver of consumer engagement across the platform. Naturally, advertisers are trying to capture some of the excitement.
Even though Facebook and Google are by far outperforming Snapchat, the company is likely to boost its ad focus this year given a recent IPO.
In 2017, eMarketer predicts the instant photo messaging app’s ad revenue to increase 157.8% to $770 million in the US. That’s just slightly short of initial projections of $800 million.
However, the company’s advertising business will likely account for 1.3% of the US mobile ad market in 2017 and could reach 2.7% in 2019.