Both Google and Facebook own a huge space in the digital world and commands the highest amount of share spend on digital ad both in the US and globally. Facebook and Google are growing at much faster pace than any other tech giant of the world. According to the reports, 50% of the ads spent on the mobiles in the year 2015 in the US were only with Facebook and Google and this figure is expected to reach up to 71% by the end of 2020. On the basis of data given by the eMarketer, we estimated that these two companies generated $16 dollar from the mobile ad in the US market. The mobile ad revenue of both companies from 2015-2017 also gives the same growth rate of 26 percent from 2017 to 2020. So it shows that their growth rate generally remains constant every year. One good thing is that overall digital and mobile ad market is growing rapidly. Digital advertisement is a good way to build a business as it is the highly growing market in these days. But the bad news is that both Google and Facebook are growing at much faster rates than the entire industry. We currently only hope that any third party player will rise soon in the market to give competition to this two dominant duopoly. This seems difficult but we can see that many other new entrants with killing features and ideas have entered the market.
Amount of Global ad spend
According to estimates, the global ad spends on all channels including digital, TV, outdoor, print, radio, etc. Will grow to 5.6 percent annually from 2015 to 2020 and will reach $674 billion dollars. US market will reach up to $234 billion dollars at the end of 2020 and this amount will represent 35 percent of the global ad market. The rapidly developing market in East will ultimately lead to the higher average global growth.
45% of ad spend in the US will be digital
Last year the US spent almost 33% on the digital ad and this amount is expected to reach up to 45% by the end of 2020. In numbers, we can say that it is a $60 billion market growing to $105 billion, with the annual growth rate of 11.9 percent. The digital market is growing more than two times higher than the overall market that represents the tremendous opportunity in the digital advertisement business. Most of the advertisers are spending their budgets on online advertising as people are accessing more content online.
Mobile ad spend will reach $77 billion
Currently, ad spend on mobile is about $32 percent and it is expected to grow up to 141 percent by 2020 in the US only. The amount of money spend on the mobile ad is two times higher than the digital ad and five times more than the overall ad market.