Recently I came across an article on the Social Times
(http://www.adweek.com/socialtimes/emarketer-digital-marketing/617758).
For many tech companies, like Google and Yahoo, digital advertising has become
an important part of their business models. Companies that can capitalize on
digital ads can push themselves to the top of the market, as Facebook has done
in recent years. New data from eMarketer examines how digital marketing’s key
players will shift positions in the coming years.
The revenue generated by digital marketing is
growing every year, so it is no wonder that social companies would attempt to
leverage their user bases to cash in. eMarketer predicts that the combined
expenditure on U.S. digital display ads in 2015 will top $27 billion, and that spending could increase
to more than $37 billion by 2017.
Facebook is predicted to capture 25.2 percent of the
revenue in the market this year, possibly a result of aggressive expansion.
This represents growth of 1.4 percent compared to 2014; however, the growth of
market share will increase revenue 29 percent to $6.82 billion, according to
eMarketer’s predictions.
Twitter’s share of the market is predicted to
increase its by 1.3 percent, with a revenue increase of more than 62 percent.
Emarketer expects Amazon’s revenue to grow by more than 23 percent to $820
million, but there is no predicted growth in market share this year.
Google, Yahoo, AOL and Microsoft are all predicted
to lose market share and revenue in the coming years. According to eMarketer,
Google’s market share is expected to shrink 3.3 percent between 2013 and 2017,
while Yahoo will lose 3.7 percent, AOL will slip 1.1 percent and Microsoft will
lose 2.7 percent.
During the period between 2014 and 2017 desktop ad
revenues are projected to decline slightly while mobile revenues skyrocket.
Desktop ad revenues are expected to fall from $12.56 billion to $11.67 billion,
while mobile will increase from $9.65 billion to $25.69 billion — an increase
of more than 266 percent.
Facebook is predicted to generate $4.91 billion this
year, and $7.52 billion by 2017 — an increase of 50 percent. Google will grow
at a slower rate, increasing from $1.47 billion to $2.37 billion, and Twitter
will grow from $1.19 billion to $2.29 billion by 2017.
It seems companies that have invested in
advertising, and especially in mobile advertising, will be dominating the
market in the coming years. If Google hopes to maintain its position of
dominance, and if the likes of Yahoo and Microsoft want to stay relevant,
they’ll need to make a serious investment in mobile.
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