We have officially entered a new age of advertising; where the digital world has overpowered the traditional methods of influence. In 2019, companies like Facebook and Google are predicted to be a more effective form of advertising than their predecessors: television, newspaper, magazine and radio.
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According to estimates from the market research company eMarketer, digital advertising in the US will be given more priority and resources than any other platform, marking a major shift in how businesses have operated up until now. Advertisers are predicted to spend over $129 billion on digital advertisement, and an approximate $109 billion on the traditional forms of advertisement—a $20 billion dollar difference that defines an economic revelation; out with the old, in with the new.
For the first time in US history, digital advertisement makes up more than 50% of our economy. The leaders of this revolution, the two biggest digital conglomerates of this age of technology: Facebook and Google—two household names that have made a colossal impact on our digital lifestyles in the past four years.
In 2015, the digital advertising market was half the size and investment of traditional marketing. In the time since, they have grown both financially and influentially as our society blends deeper with the age of technology. This has been a steady increase in power, despite some legitimate legal conflicts.
Facebook and Google have both been involved with some controversy in the last year. Congress seems to have some concerns with Facebook from an operational standpoint, and Google has also been before congress in question. Both companies are at risk of a regulatory overhaul both in the United States and abroad. Despite these concerns, both companies are becoming more powerful and influential, remaining major contributors to the domination of modern marketing.
Combined, Facebook and Google made up 60% of the digital advertising industry last year, with an estimated $65 billion in revenue. This is predicted to stay consistent, with a years worth of digital innovation they are projected to keep 59% of the industry this year—with an estimated $77 billion in revenue by 2020—persisting as the digital advertising superpowers that they have become.
At the cost of this rise in digital ad popularity, the traditional platforms are expected to suffer. Predictions from eMarketer suggest an 18% decrease in printer advertising next year, affecting newspaper, magazine, and other forms of traditional print media. Directories such as Yellow Pages are expected to suffer the same with a 19% decrease.
The Goliaths of digital advertising are even taking some of the action away from other digital media. The online news platform Buzzfeed has initiated a major layoff at a result. A company that once thrived with the help of platforms like Facebook, is now realizing that the giants of digital advertising aren’t particularly interested in sharing their wealth.
While it may seem that Google and Facebook may be nearing a marketing stranglehold, there is another contender climbing to the top—Amazon. While in 2015 the company had made up a mere 1.2% of the digital advertising market, they have since grew to about 8.8% making them the third largest player in the new age of marketing.