Disrupting the World of Digital Advertising
Digital advertising is rapidly growing, with another 18% increase worldwide on top of the 20% achieved this year according to eMarketer. Facebook and Google will continue to consume more and more of the digital advertising revenues (Google $24B, Facebook $8B) from the industry along with digital advertising going mobile.
As this growth trend accelerates, Google and Facebook will combine for 61% of all digital advertising revenue by 2018, up from "just" 35% in 2015.
We're seeing growth from Facebook and Google, but it's not those platforms overall -- the second big trend for 2017 is mobile advertising dollars running to catch up with mobile time spent.
According to Comscore, mobile now consumes two-thirds of all digital time spent in the United States, and its above 50% in every major market that eMarketer examined.
Mobile advertising spending is chasing after that time spent -- in 2015, eMarketer showed mobile advertising as just over half of all media spending in the United States, but that number will jump to 74% by 2018.
It's not a surprise Google and Facebook have stayed ahead of everyone else. The two platforms have focused on two key areas: personalizing advertising and mobile advertising.
Last month, Facebook announced that they have a billion mobile-only users -- not a billion users of the mobile app, but a billion people for whom the entire Facebook experience takes place on mobile. Google has invested its vast resources into mobile search, and in May 2015, more than 18 months ago, it said that "More Google searches take place on mobile devices than on computers in 10 countries including the US and Japan."
At the same time, both platforms have enabled more personalization of advertising than was ever possible before, especially using Facebook Custom Audiences and Google Customer Match.
Being an early stage growth company, it may be another Google or Facebook, that has created millionaires out of investors and employees in a very short period of time.