Succession: Meta likely to overtake Google in online ad revenue
Half of all online advertising spending goes to Meta and Google. According to an analysis, the Facebook group will overtake Google this year.
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Meta Platforms could for the first time this year earn more from online advertising than Google, while both US companies will divide more than half of the global market between them. This, at least, is the central finding of an analysis by US market research firm Emarketer, according to which Meta will grow “at an unprecedented pace for a company of this size.” In total, the Facebook and Instagram group is expected to earn $243.46 billion from digital advertising this year, while $239.54 billion is expected for Google. Amazon will land in third place by a wide margin, with $82.07 billion in digital advertising revenue.
Faster growth at Meta
According to Emarketer, Meta's growth is not coming from a single source, but from various parts of its vast ecosystem. On Facebook alone, 16 percent of global online advertising spending will be allocated this year, and on Instagram, according to the analysis, it will be 10.5 percent. Both platforms will thus each generate more revenue from digital advertising than the entire offerings of Amazon, ByteDance, Microsoft, Apple, and other major internet services. The market research firm also estimates that the short-messaging service Threads will generate about as much advertising revenue this year as X (formerly Twitter). WhatsApp will add half of that on top.
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Overall, Emarketer expects internet advertising revenue to continue to rise sharply in the coming years. By 2028, Meta is expected to earn more than $316 billion from it, while Google is expected to earn $298 billion. “For the vast majority of advertisers, the question is not whether they should spend money on Meta's apps – the question is rather how much they should spend,” says analyst Max Willens. The analysis was completed before the recent court decisions against Meta and Google's YouTube, but Emarketer does not expect them to have a “significant impact” on the figures.
(mho)
