Facebook vs Google: the battle of digital ads

Facebook vs Google: the battle of digital ads
Digital marketing concept infographics vector background. Word cloud with online advertising keywords and managers analysing data preparing strategy or campaign. Eps10 vector illustration.

In 2016, revenue from Global Internet Advertising hit a mega $153.65 billion. It comes as no surprise that two of the market’s biggest heavyweights were Google and Facebook. But what’s in store for 2017, with digital advertising set to continue its expansion like a supernova – although hopefully without the disastrous consequences?For a start, mobile ads will continue to stack on some lbs as a major channel for advertisers to tap into consumer minds. That’s at least according to the US marketing agency, Magna – they expect a 54% increase in 2017. This is the first interesting battlefield that could see the Google/Facebook duopoly drop some stock – okay, not enough to warrant a major blow, but Snapchat’s first paddle on the stock market and Amazon’s endeavours to diversify its ad portfolio will have raised eyebrows in Zuck Towers for sure.

When it comes to display ads, however, the big two look set to come through unscathed. In fact, Facebook expects to steal more of the market from Google (among others) in 2017, upping its share to 39.1% in the US. That’s around $16 billion of a $41 billion market!

Video ads could be interesting, as concerns surrounding ad-blockers and user engagement appear to be dampening. The analytics agency, ComScore, conducted a study in 2016 and discovered that only around 9% of US desktop-users used them. That number drops even lower to only 0.1% when it comes to mobile web page viewers.

Can you guess who’s already established a knack for hanging on to viewers for video ads? If you guessed Facebook, you guessed right. That could be down to the fact that people spend 20 minutes per visit, on average – throw Instagram into that engagement mix and you’ve got yourself some pretty healthy projections. On top of all that, Google recently announced it would be coming down hard on those annoying YouTube ads, thus reducing that revenue opportunity.

So what about Google, what’s left for them? They are still the world’s biggest search engine after all, including mobile browsing. With this in mind, Google expects its ad market to grow by nearly 15% in the US in 2017 – search ad revenue should actually jump by 16%.