Google will maintain its dominance and account for 40.7% of US digital ad revenues in 2017—more than double Facebook’s share. And we’re talking near 41% of the total US digital ad spending of US$83 billion in 2017 – a whopping increase of 15.9%, according to eMarketer’s latest forecast.
And that near-monopolistic dominance of the US search market continues to be pushed by the growing tendence of consumers to turn to their smartphones to look up “everything from the details of a product to directions”, per eMarketer forecasting analyst Monica Peart, who says, “Google and mobie search as a whole will continue to benefit from this behavioural shift.”
So eMarketer expects Google’s share of the search market to grow 16.1% to $28.55 billion in 2017.
As Google dominates search, Facebook rules display. 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.
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.
However, the balance is tipping, indicates the eMarketer forecast. While Google’s display business will rise to $5.24 billion, its share of the display market will drop to 12.5%.
Video a key drive on Facebook, Instagram
“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.
Snapchat set for explosive growth
With its IPO now behind it, Snapchat is poised for explosive growth this year. In 2017, Snapchat’s ad revenue will grow 157.8% to $770 million in the US. That’s slightly lower than the $800 million previously projected, due to higher-than-estimated revenue sharing with partners.
Snapchat’s ad business, which is made up entirely of mobile display, is still small. Snapchat will account for 1.3% of the US mobile ad market this year. By 2019, that will grow to 2.7%.