The Growth of Digital Advertising: YouTube & Facebook Dominate the Market
Google and Facebook continue to dominate the digital advertising space. Combined, the two major players control 54 percent of the industry, according to Barron’s. In 2017, ad spending for digital is predicted to overtake television and mobile, for the first time, is expected to account for over half of all digital advertising.
The Rise of Mobile
While the shift from traditional to digital advertising has been years in the making, 2017 is expected to be a crucial turning point. This year, digital ads are projected to bring in over $202 billion, accounting for 40 percent of all ad spends. Furthermore, digital platforms are expected to capture a 50 percent share by 2021, whereas television’s share will shrink to just 33 percent.
It’s important to note that digital advertising is no longer limited to banner and display ads. Almost all of the recent growth in digital ads has come from search engines and social media, particularly social videos. Mobile is playing a major role in this growth as small screens will account for 52 percent of digital ad dollars spent this year. By 2021, that number will jump to 72 percent. According to Business Insider, mobile will be the fastest-growing advertising channel across all digital platforms.
YouTube Leads Mobile Video Charge
YouTube has become a major player in social media advertising. The video platform contributed to 20 percent year-over-year increase in ad revenue for Google’s parent company Alphabet. While Google did not specify precisely how much YouTube contributed to the overall ad revenue, the company did say YouTube’s ad revenue grew significantly.
Google has plans to make improvements to YouTube’s ad platform and give marketers better tools to measure their reach and target audiences, especially when it comes to mobile. According to TechCrunch, 50 percent of YouTube video views take place on mobile. For marketers, it’s important to note that many of the old tracking capabilities that worked for desktop will not be as effective on mobile.
In order to implement better tracking solutions, Google plans to work with companies comScore, DoubleVerify, IAS, MOAT and Nielsen. Google will also utilize information from activity associated with users’ Google accounts, such as demographics and past searches, in order to show the most relevant ads to users on YouTube. This is great news for marketers because Google will also allow retailers to use their own customer data to target their high-value shoppers on YouTube.