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BizReport : Advertising archives : December 20, 2016

Facebook, Google to account for 71% of display ad market in UK by 2020

By 2020, Facebook and Google will account for nearly three-quarters of the display advertising market the UK, according to a new report from OC&C Strategy Consultants.

by Helen Leggatt

Facebook and Google currently account for 53% of the UK's £4bn (US$4.9bn) online display advertising market. Over the next four years, OC&C Strategy Consultants predict a 24% YoY combined annual growth leading to a 71% share.

"Google and Facebook provide unique tools which allow marketers to reach and target customers in new and innovative ways," said Fergus Jarvis, partner at OC&C Strategy Consultants. "As these tools become more precise, and their audience continues to grow, CMOs are increasingly seeing the benefit of highly measurable and targeted campaigns. As a result, Facebook and Google's command of the online advertising market is not a matter of if, but when."

Currently, display advertising formats, such as online banner, rich media (video, images, audio) are the leading online formats globally and represent around 40% of global advertising spend ($216bn). The combination of precision and reach is, say marketers interviewed for the report, enticing and as such Facebook and Google will be crucial to the future dissemination of these ad formats going forward.

"Facebook and Google are increasingly at the center of all content consumed on a mobile and can provide quite remarkable reach to advertisers as a result," said Jarvis. "But as more and more advertising spend drifts towards Facebook and Google, it's all the more important for marketers to understand the returns these platforms can generate. CMOs need to do two things: firstly, they need to understand how much better the ROI is for advertising through Facebook and Google compared with other channels; and secondly, they need to ensure that ad spend through these platforms forms part of a diversified media and marketing mix."

Tags: display advertising, research, trends

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