Sales in the US digital ads market surpassed those of traditional media such as TVs and newspapers for the first time.
The Wall Street Journal reported on the 1st that sales in the US digital advertising market reached 111 billion dollars this year. Accounting for 51 percent of the U.S. advertising market. The total U.S. advertising market is approximately around $214.6 billion this year.
In particular, Google, Facebook and Amazon account for two-thirds of the digital advertising market.
In the case of Facebook, its advertising revenue rose 22 percent year-on-year in the third quarter of this year despite controversy over its boycott of ads. Google rose 10 percent to $37.1 billion. And Amazon gained 51 percent to $5.4 billion.
How US digital ads surpassed traditional media for the first time
The WSJ analyzed that the reason why digital advertisement sales took up more than half of the total advertising market is due to the COVID-19 pandemic early this year. Advertisers have turned to digital advertising that can target key consumers more efficiently. Because they have no choice but to reduce advertising costs due to economic damage,
Small and medium-sized companies, which do not have a large budget for advertising, are more interested in digital advertising.
The growth was rapid. With the digital advertising market accounting for only one-third of the entire U.S. advertising market three years ago.
Analysts say that the digital advertising market will continue to grow regardless of COVID-19.
The U.S. advertising market is expected to grow 12 percent from this year to 240 billion dollars next year. Of which sales in the digital advertising market could reach to 130 billion dollars. Accounting for 54 percent of the total.
At that time, the advertising sales of the four traditional media were similar to those of online platform ads. But this year they decreased to 21 percent.
Group M predicted that the TV ad market would rebound 6.6 percent next year. But the newspaper ad market would shrink 12 percent.
