Google and Facebook dominating digital advertising
Facebook and Google are capturing the biggest share of digital advertising as analysts forecast their market supremacy is growing from strength to strength.
Twitter, Yelp, the online review company and LinkedIn all lost quarter of their value of stock market capitalization after reporting that their advertising revenue is growing more slowly than expected by investors.
The IAB Interactive Advertising Bureau last week reported that digital advertising in the US grew to 16 per cent to $49.5bn £33bn in 2014. Google and Facebook cornered $30bn £20bn equivalent to 60 per cent of the total.
Potential advertisers are finding Google and Facebook as one-stop solution. Even Snapchat is finding it difficult. However, Linkedin , supported by its recruitment business, is not reliant on advertising for its revenue . Twitter shares fell by 26 per cent on last Tuesday 28th April 2015 and missed revenue expectations with 302m users many brands find Facebook much more sophisticated.
Adam Smith, Futures director at Group M the media buyer for WPP world’s biggest advertising group by sales claims static ads are thing of the past and brands are opting for more dynamic video content.
According to Adam Smith: UK’s advertising spending in 2015 will increase 5.7 percent to £15.7 billion ($24.5 billion).£1.9bn ($23.3bn) in 2014, up from £14bn ($21.9bn) in 2013, the fastest growth of any major, mature consumer economy. The digital advertising spending forecast £8.1 billion ($12.6 billion) in 2015, indicating a 13 percent increase. “The familiar drivers are video, social and mobile, but the underlying reason is more practical and attractive formats for brands – richer, more trackable, more targeted and more clickable,” said Smith.
Facebook and Google which owns YouTube are quite prepared for the future video world, which the brands are attracted and the likes of Twitter, LinkedIn and Yelp are lacking behind.
Google created “YouTube Preferred” which allows brands to position their ads next to the most popular content on the video service.
Twitter which acquired Periscope the live-streaming app in January 2015 is trying enhance its video proficiencies.
LinkedIn is also making big changes in its sales force to maximize its marketing revenues.