Google, Facebook and Amazon Gain as Coronavirus Reshapes Ad Spending
For the first time, more than half of U.S. advertising spending is set to go to digital platforms such as Google and Facebook , the world’s largest ad buyer said, a reflection of marketers’ strategy shift as the coronavirus pandemic pummeled the industry this year.
The milestone is just the latest proof of digital advertising’s meteoric rise, a development that has concentrated ad spending with several tech giants at the expense of other platforms, including newspapers, local television and magazines.
Online ads can be cheaper than those placed on other media platforms and they allow marketers to better target and measure the performance of their ads. These advantages have become ever more important during the pandemic as businesses cut ad budgets and consumers spend more of their time and dollars online.
“Digital advertising has been a remarkable bright spot in an otherwise dark year for the advertising industry,” GroupM, a unit of WPP PLC, said in a report expected to be released Tuesday.
GroupM expects marketers to spend $110.1 billion on digital ads this year, or 51% of the total $214.6 billion total U.S. advertising-spending forecast, excluding political ad outlays. Next year, it expects U.S. ad spending to grow 12% to $240 billion, and digital advertising to account for $130 billion, or 54% of the total.