Complete Story
12/07/2017
The duopoly will capture almost all advertising growth in 2018
Digital advertising is growing, and big platforms like Google and Facebook continue to reap the profits.
That’s the insight from global ad spend forecasts released Sunday by GroupM, Zenith and Magna, which predict the industry will grow between 3.1% and 5.2% this year to as high as $535 billion, as reported by Magna. Advertising growth will be fueled by digital, which will grow between 11.5% and 13% in 2018 and account for half of global ad dollars by 2020.
“The transition to a digital-centric media world accelerates as digital ad sales continue to grow as fast – and often faster – than expected,” said, Vincent Letang, EVP of global market intelligence at Magna, in the report.
But digital’s growth – and therefore industry growth – will be fueled by the prosperity of Facebook and Google.
GroupM pegs Google and Facebook’s current share of global digital ad investment, excluding China, at 84%. Zenith said both platforms accounted for 96% of growth in global digital ad spend in 2017. And despite concerns about Facebook’s shrinking ad load, Magna said social media will grow by 37% this year, while video grows by 28% in the US.
