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Digital Ads (Led By Google and Facebook) to Dominate Ad Spending by 2026
By: TheStreet | December 7, 2021

• The advertising market continued to expand much more quickly than forecasters earlier predicted in 2021.

Digital advertising spending dominated by tech giants Meta Platforms (FB), formerly Facebook and Alphabet-owned Google (GOOGL) is expected to command 72% of the overall advertising pie by 2026, WPP's media buying firm GroupM projected.

To be sure, this is more than double of digital's advertising share in 2016.

Online news publisher Deadline first reported the ad projections.

Overall Ad Spending Is Rising

Share of online advertising revenue grew 30.5% to $228.96 billion in 2021 as the world recovered from the coronavirus pandemic with social media and audio platforms (podcast and music streaming services) driving the jump.

Overall spending on advertising is expected to rise 10% in 2022, according to GroupM estimates, ahead of the 8.8% forecast earlier. This includes advertising across TV, digital platforms, audio, print media, cinema and outdoor media.

Separately, ad-buying giant Magna is projecting a more robust 12% rise in ad spends in 2022, to clock $795 billion globally.

The advertising market is continuing to expand much more quickly than forecasters earlier predicted.

Spends on advertisements have risen 22% in 2021, faster than the previous 19% projected by GroupM to touch $763.2 billion, over last year.

Like 2021, which exceeded GroupM’s earlier outlook of 19% growth, 2022 is “poised to grow faster than we predicted in June,” the company wrote in the report.

Traditional TV Will Lose Some Ad Revenue

Television ads, roughly $60 billion in revenue, which are traditionally the largest contributor to overall ad spending are expected to shrink in size as ad-supported streaming services like HBO Max and Hulu gain eyeballs.

TV advertising will reach $171 billion in 2022, with about 10% of that devoted to what the GroupM described as “Connected TV+,” mainly ad-supported streaming, a category projected to triple to $33 billion by 2026.

“Much of this space is, and will remain, ad-free, largely because the dominant players, such as Netflix, Amazon Prime and Disney+, are ad-free and plan to remain so in most of the world for the foreseeable future,” the GroupM report noted.

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