Google, Meta To Dominate As Digital Ad Growth Continues


Google, Meta To Dominate As Digital Ad Growth Continues



by  @lauriesullivan, December 6, 2021

Despite a year marked with worldwide supply-chain woes, brands continued to rely heavily on search engine and social media companies like Google and Meta, respectively — two industries that will help the advertising industry continue its growth in 2022, according to data released Monday.


GroupM forecast global ad spend to grow 22.5% in 2021 from the previous year, and 2022 is poised to grow faster than initially predicted in June. The agency is now forecasting global growth of 9.7% versus 8.8% previously.


At a global level, the media we track here — TV, digital platforms, audio, newspapers and magazines, cinema and outdoor media — will collectively account for $766 billion in ad revenue.


Zenith estimates growth of 15.6% in 2021, a revised estimated from previous expectations.


Global ad spend in 2023 should expand by 5.7% in 2023 and 7.4% in 2024, as brands continue to use advertising to spur further growth in ecommerce. Zenith estimates global ad spend will reach $705 billion in 2021, up from $634 billion in 2019. Then it will jump to $873 billion by 2024.


The growth will benefit companies such as Alphabet, Amazon, Meta and Amazon — major sellers of digital ads outside of China, supporting millions of smaller companies, according to GroupM.


Alphabet, Meta and Amazon account for somewhere between 80% and 90% of the global total of ad sales, per GroupM estimates. In fact, the three media companies represent more than 50% of the industry’s total in 2021, up from around 40% in 2019.


Global all-media advertising spending has grown nearly 22% to reach a new all-time high of $710 billion, according to the Magna Global advertising forecast released today. Analysts expected to see record growth in 2021, but this growth exceeded recovery.


Magna reported that digital growth from consumer brands comes partly at the expense of traditional linear channels, but when it comes to small businesses — which represent the bulk of search and social ad spend — it is almost entirely incremental money being added to the advertising pie.


Digital advertising formats such as search, social, video, banners, and digital audio grew by more than 31% to reach $442 billion or 146% of the pre-COVID market size. In fact, digital ad formats now account for 62% of total advertising sales worldwide.


All digital ad formats grew by double digits in 2021, led by video at more than 37%, social media by 34%, and search by 33%.


Pricing was also a key to how much marketers spent this year. Supply increased, too, as digital video and social media continued to grow, but this still was not enough to meet exploding demand, which led to double-digit inflation in CPM or CPC costs, according to Magna.


Pure-play digital advertising sales will increase by 17% to $190 billion — but search at 18% and social media formats at 18% will drive growth in 2022, according to Magna.


Brands continue to rely heavily on search engine and social media companies like Google and Meta — two industries that will help the ad industry’s continued growth in 2022, according to data released Monday.

 

(11)

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.