U.S. digital advertising in 2017: $83 billion.
At least that’s the number predicted earlier this month by eMarketer, the respected market research company, which also pointed out the figure will take into account a nearly 16 percent increase in digital ad spend over 2016.
The numbers are important because the U.S. digital ad market is by far the largest in the world. Around the world, in all media, nearly $500 billion was spent on advertising in 2016.
Of course, the largest share of that digital ad revenue will go to Google with Facebook coming in second, well behind the search giant.
“Google will maintain its dominance and account for 40.7% of US digital ad revenues in 2017—more than double Facebook’s share,” says eMarketer. “Google’s share of the search market (will) grow 16.1% to $28.55 billion in 2017. The search giant will claim roughly 78% of total US search ad revenues this year.”
The figures were released just before The Times of London published a piece pointing out how Google helps fund extremist groups by running ads next to (and in) extremist videos on YouTube and other media. A wide spread boycott of Google was launched by major advertisers and Google says it is working to correct the problem. Big FUBAR by Google.
“We have strict policies that define where Google ads should appear, and in the vast majority of cases, our policies and tools work as intended. But at times we don’t get it right,” admitted Google in a post.
“Recently, we had a number of cases where brands’ ads appeared on content that was not aligned with their values. For this, we deeply apologize. We know that this is unacceptable to the advertisers and agencies who put their trust in us. That’s why we’ve been conducting an extensive review of our advertising policies and tools, and why we made a public commitment last week to put in place changes that would give brands more control over where their ads appear.”
eMarketer says regardless of the boycott and controversy it’s easy to understand why Google will garner so much of the digital ad spend: smartphones. Nearly all of us have them now and turn to them when we want to know something…or…search for something.
“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,” said eMarketer forecasting analyst Monica Peart. “Google and mobile search as a whole will continue to benefit from this behavioral shift.”
But while Google corners the market for ads buys in the search market, Facebook dominates the market of display advertising on the digital spaces.
“The social network’s US display business will jump 32.1% to $16.33 billion, capturing 39.1% of the US display market, taking share away from Google, Yahoo, and Twitter,” said eMarketer.
“Facebook’s revenue growth can be attributed to growth in both usage and time spent, which continues to draw advertisers in greater numbers. Instagram is also helping to drive Facebook’s revenue growth. In fact, Instagram will make up 20% of Facebook’s US mobile revenue this year, up from 15% last year.”
The firm also predicted (again, ahead of the ad boycott) Google’s display ad sales will also increase but its actual market share will decrease as Facebook’s rises.
“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,” said Peart.
Twitter reduces character count in replies
Reply to your Twitterati friends now and the Twitter handles of your friends no longer count against your 140-character count.
Can we stand the excitement?
“With this change, we’ve simplified conversations in a few ways”, said Twitter in a post:
- Who you are replying to will appear above the Tweet text rather than within the Tweet text itself, so you have more characters to have conversations.
- You can tap on “Replying to…” to easily see and control who’s part of your conversation.
- When reading a conversation, you’ll actually see what people are saying, rather than seeing lots of @usernames at the start of a Tweet.
Twitter unchained Direct Messages (DMs) from the 140-character limit quite a while ago and everyone’s favorite micro-blog eliminated images from the character count back in September.
We’re changing replies so that you have all 140 characters to express yourself.
— Twitter (@Twitter) March 30, 2017