Google to dominate Facebook on ads as Twitter sputters: new report

Google will haul in more than double the U.S. digital ad revenue of Facebook this year, its rising fortunes driven by Americans increasingly using their phones for internet searches, according to a new report.

“Google’s dominance in search, especially mobile search, 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,” eMarketer forecasting analyst Monica Peart said.

“Google and mobile search as a whole will continue to benefit from this behavioral shift.”

Although Google’s expected capture of 41 percent of the total domestic digital ad market is more than twice the share forecasted by eMarketer for Facebook.

But Facebook is far from getting left behind.

With Google grabbing search-ad revenue, Facebook dominates display advertising. It will snatch 39 percent of the U.S. market for display ads this year, “taking share away from Google, Yahoo, and Twitter,” eMarketer said.

That growth by the social media titan comes from increases in usage and time spent on the platform, the market intelligence firm reported.

“Instagram is also helping to drive Facebook’s revenue growth,” eMarketer said. “In fact, Instagram will make up 20 percent of Facebook’s U.S. mobile revenue this year, up from 15 percent last year.”

Forecaster Peart said live and recorded video on Facebook and Instagram are key drivers for user engagement and “advertiser enthusiasm.”

Google’s display ad revenue is expected to rise to more than $5 billion in 2017, but its portion of the total U.S. display ad market will drop to about 13 percent, eMarketer predicted.

Not exactly churning ahead is Twitter, according to eMarketer, which said it had “significantly lowered its U.S. outlook for Twitter this year, based on flat user growth and guidance from the company.”

Twitter’s domestic ad revenue will drop nearly 5 percent this year, and its share of the U.S. digital ad market will drop to 1.6 percent from 1.9 percent last year, eMarketer reported.

Still, the rest of the world is giving the micro-blogging site a lift: worldwide, its revenue will increase 1.6 percent this year, according to eMarketer.

 

Photo: A woman uses an Android smartphone (AP/Geert Vanden Wijngaert)

 

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