Where will you spend your advertising dollars this year? If this eMarketer report on the latest estimates for 2017 is any indication, it’ll likely be Google. But there are definitely some promising ad platforms that you shouldn’t discount. Let’s take a look at findings from the report.
Google Dominates Digital Advertising
Not surprisingly to anyone in digital advertising, Google is the dominant force there. According to eMarketer, the search engine giant will account for just more than 40 percent of digital ad revenue over the course of 2017 (that’s more than double Facebook’s share).
Google Search Ads
Google’s share of the search market specifically is expected to grow 16.1 percent to reach $28.55 billion over the rest of the year, and the company will likely bring in 78 percent of the United States’ search ad revenue in 2017.
One eMarketer forecast analyst, Monica Peart, feels Google’s dominance is in large part due to the ever-growing habit of searching everything from product details to directions on smartphones. This habit has spurred mobile search growth in particular.
For advertisers, that’s a (perhaps expected) signal to continue focusing on mobile advertising. Keep in mind that users view search ads differently on mobile than they do on desktop. They’re scrolling to see more ads, but spending less time reading each one. Optimize your ads and sites for mobile, and keep the content relevant (read: competitive).
While we know that users aren’t all that thrilled with mobile digital advertising, we also know that user experience is everything. Protect your reputation and your bottom line by being non-disruptive with native advertising, relevant in messaging and entertaining enough to boost engagement.
Google Display Ads
Although Google is the dominating force, it doesn’t rule when it comes to display ads. Its display business is expected to rise to $5.24 billion in 2017, however, Google’s share of the display market is likely to drop to 12.5 percent. Another giant is currently ruling display advertising …
Facebook Holds the Display Network
Another expected frontrunner, Facebook dominates display digital advertising. In 2017, its United States display business will go up 32.1 percent to reach $16.33 billion (more than twice Google’s expected display business). In the process, it will drain display share from Google, Yahoo and Twitter to claim 39.1 percent of the market.
Much of this is attributed to Facebook’s growth as a social and advertising platform. With 1.23 billion daily active users and more than 3 million active advertisers by the end of 2016, it’s a laboratory of growth for video and other ad content.
We’ve talked about Facebook quite a bit lately, and highlighted some of the things that make it such an advertising success. Advertisers have numerous ways to target audiences on the network, from large factors like location to details like ethnicity and food preferences.
Advertising with video on Facebook means an opportunity to take advantage of updates to video ad delivery and profit-sharing. The network is also boosting emphasis on video quality and overall ad-viewing.
Instagram and Snapchat Doing Their Part
The eMarketer report credits some of Facebook’s revenue growth to Instagram, which will make up 20 percent of the network’s 2017 mobile revenue in the Unites States (an uptick from 2016’s 15 percent). Instagram is also driving video popularity on Facebook (see “New Choices for Video Buying” in the first link in the previous paragraph).
At SearchForce, we know that Instagram is a great tool for branding with quality images and captions. Currently, 1 million monthly active advertisers share their brands on Instagram, and the platform has made several recent announcements about advertising updates:
- Stories ads are now available to all businesses for improved targeting and reach.
- Advertisers can share up to 10 images or videos on one post for a more complete picture.
- The shopping experience is improved for easier finding, evaluating and tracking of relevant products.
Snapchat is also developing its digital advertising. According to eMarketer, 2017 will bring the photo- and video-sharing platform 157.8 percent growth for $770 million in revenue in the United States.
Because its ad business is all within the mobile display network, Snapchat has a way to go if it wants to compete with the likes of Google and Facebook. Still, by 2019, it’s expected to account for 2.7 percent of the U.S. mobile ad market (up from a current 1.3 percent).
Like we said, it’s no surprise that Google is at the top of the digital advertising game. However, when you’re weighing ads on the search versus the display network, it’s good to know where your dollars might be better spent.
And of course, don’t forget to remember smaller yet promising players like Instagram and Snapchat when developing your digital ad strategy.