Source : Flickr/Acid Pix
Google and Facebook are two of the biggest advertising agencies as they hold over 50 percent of the total advertising market in the US. Despite Google being the top advertising network, Facebook is growing at a decent rate as a recent report by eMarketer noted that Facebook’s U.S. digital ad revenue is also growing more than twice the rate of Google’s. the firm reported that Google is expected to grow its market by 15 percent over this year while Facebook is set to increase its revenues by 32 percent.
Analyst Monica Peart wrote, “Facebook’s users are increasingly captivated by videos on the platform — not just on Facebook, but on Instagram as well. Video, both live and recorded, is a key driver of growing user engagement and advertiser enthusiasm.”
With Facebook’s advertising revenue is set to reach $16.33 billion this year, other companies such as Google, Twitter and Yahoo will see decline in the advertising revenue as the report predicted that Google’s share of the display market will drop to 12.5 percent on $5.24 billion in revenue, according to eMarketer’s data.
Monica Peart also noted, “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.”
With the advertising market growing even bigger, it will be worthwhile to see how the networks come up with different solutions to increase their market shares.