Google ad revenues to dip as market becomes ‘triopoly’ ― Tracker

0
97

Google is expected to see its first decline in US ad revenues this year as the coronavirus pandemic hits travel advertising, a market tracker said Monday.

 

New research by eMarketer indicates Google will still be leading digital advertising but with a smaller share as the market evolves into a “triopoly” with Facebook and Amazon.

Google’s net US digital ad revenues will drop 5.3 percent to $39.58 billion to bring its market share down to 29.4 percent, according to the eMarketer forecast which was sharply revised due to the pandemic.

RELATED NEWS:Why Nigeria Cannot Enforce Tax Against Facebook, Google, Others—Expert

Google’s decline is “primarily because of a sharp pullback in travel advertiser spending, which in the past has been heavily concentrated on Google’s search ad products,” said eMarketer analyst Nicole Perrin.

“Travel has been the hardest-hit industry during the pandemic, with the most extreme spending declines of any industry. E-commerce-related ad spending has also been dampened to some extent: Amazon reportedly pulled its ads from Google search earlier this year as it struggled to meet customer demand for its e-commerce services.”

A big part of the decline will come from “search advertising,” or paid messages deployed by Google when a user enters a search query.

Search ad revenue, in which travel is a major component, is expected to drop by 7.2 percent in the US, eMarketer said.

READ ALSO:Arizona takes Google to court over location tracking

Facebook is expected to see growth in its US ad revenues of nearly five percent to $31.43 billion, driven by Instagram, according to the report. That would give Mark Zuckerberg’s firm a 23.4 percent market share.

Amazon, meanwhile, is extending its strong growth in online advertising with an expected 23.5 percent rise to $12.75 billion, putting its market share at 9.5 percent, eMarketer said.

Watch Leakblast TV channel from around the world

Until recently, analysts had described the digital ad market as a duopoly dominated by Google and Facebook, but Amazon has been rising quickly.

Google has been growing at a slower rate than the overall digital ad market since 2016, ” so this year will continue a trend of Google losing digital ad market share in the US,” Perrin said.

Thanks for Reading via the most updated news portal

About Leakblast.com

Share your story with us

Advertise With us

Encourage & Support LeakBlast

Feel free to contact us

Call Us:+234(0)9073726403
Get us on Whatsapp: +234(0)8181166425      
Email Us: editors@leakblast.com

SUPPORT LEAKBLAST JOURNALISM OF INTEGRITY AND CREDIBILITY

Good  journalism costs a lot of money.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble Endeavor.

By contributing to LeakBlast, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Support LeakBlast

LEAVE A REPLY

Please enter your comment!
Please enter your name here