While digital advertising is witnessing a global explosion, Google, along with Facebook, is predicted to take their duopoly over digital ad revenue in 2017 to an incredible 15.9 pc rise from the last year figures. India is television friendly, but mobile ads are gaining prominence.
Traditional media ad spending versus the online ad spending in India still remains precariously poised as a New York-based market research company that provides insights and trends related to digital marketing, eMarketer, pointed out the television to be the most popular medium in India for ad-spend in 2017. However, the mobile ad spending in India is set to grow by 85 pc, the company added. While Google continues to dominate the search engine advertising in the world, Facebook is fast catching up with higher growth rates, making its mobile ads count. According to the firm that continues to provide insightful data on new media and commerce, Google might end the year with 40.7 pc of the digital ad market in the United States while Facebook will be reaching a 19.7 pc mark, engulfing a number of competitors in the sector.
How Facebook might surpass Google?
Facebook and Google are now considered the two technology giants in the digital space and their ad revenue models, though different, work on the same principle of internet proliferation. The research report finds Facebook’s US digital revenue to have risen twice as fast as Google. While the latter sees an increase of 15 pc, Facebook is predicted to spike its ad revenues by 32 pc. The eMarketer analyst, Monica Peart cites in the report, “Facebook users are increasingly captivated by videos on the platform; not just on Facebook, but on Instagram as well. Videos, both live and recorded, are a key driver of growing user engagement and advertiser enthusiasm.”
Digital ads still a quarter in India
The research firm predicts that India will witness a growth of 12 pc in 2017 as far as the paid media ad spending is concerned, taking the estimated figure to USD 7.94 billion. Meanwhile, digital media ad spending will make up 15.3 pc of all ad outlays, but, will increase by 30 pc, much behind traditional media. Within digital sphere, mobile is the key driving force and is expected to grow by 85.0 pc this year to reach USD 460.1 million.
The demonetisation move in India also provoked a lot of advertisers to pull back on ad spending; however, eMarketer expects the slowdown following the move to be short-lived. “Traditional media outlets, especially print and TV, remain the mainstay of media advertising due to its out-sized influence on the lives of many in India,” said Shelleen Shum, senior forecasting analyst at eMarketer, adding, “Local content coverage in various languages and the widespread accessibility to print and TV signals explain their ability to hold on to large audiences. This is a stark contrast to many other countries, where both industries are facing declines in advertising revenue as audiences migrate to digital.”
India is also one of the highest users of Google and Facebook. With the rising number of smartphone users, the country is fast becoming a key source market for these two companies in terms of digital ad revenues. “Google’s dominance in search, especially mobile searches, is largely coming from the growing tendency of consumers to turn to their smartphones to look up everything from the details of a product to directions,” Peart writes in the report.
Looking at the robust growth in the second-most populated country of the world, a double-digit growth till 2020 is expected to take revenues to USD 11.82 billion, according to eMarketer. For more insights, market research and trends, in terms of digital ad revenue, write to us at Asiacom.