Online advertising: a market worth more than 200 billion dollars in 2022 in the United States



Posted Jan 14, 2022, 3:56 PM

Online advertising is not experiencing the (health) crisis. In 2022, this part of the market will for the first time in its history cross the symbolic barrier of 200 billion dollars in spending in the United States according to forecasts by GroupM (WPP). That is almost double compared to the 2019 financial year (at 107 billion dollars), the last pre-Covid. This year, the digital advertising market is expected to grow by 20.8% across the Atlantic compared to 2021 after accelerating by 38% last year.

Lockdowns and the development of remote work have acted as a particle accelerator for digital use in all its forms. This greatly benefits, by extension, online advertising. During the current fiscal year, digital advertising formats will increase their omnipotence on American soil and will represent 63.5% of affected spending, according to GroupM. Against 60.3% last year and 47.4% in 2019. Ten years ago, this section of the sector weighed 28.7 billion dollars in the United States (i.e. 17.7% of the market), which did not even account for half of television advertising, the then dominant medium.

The Google-Meta (Facebook)-Amazon (GMA) trio – which already captures more than 50% of the world market (excluding China) – will reap the main fruits of the juicy harvest ahead. The Mountain View giant (search engine, YouTube, etc.) and the Menlo Park firm (Instagram, Messenger, etc.) will generate $94 billion and $59 billion respectively in advertising revenue in the American market in 2022, according to Reuters. Or nearly 75% of the digital advertising market across the Atlantic. An omnipotence of the same magnitude as in previous exercises.

A cake that will be eaten by others

This level of concentration even exceeds 80% if Amazon is included. In recent years, the e-commerce, cloud and entertainment giant has expanded at breakneck speed in the sector thanks to the popularity of its online marketplace where the group monetizes its audience through the sale of space. and keywords, but also because of the very fine behavioral data of its customers’ purchases, which are acclaimed by advertisers and major brands. To the point of having become the third force of the sector according to the consecrated expression of Sir Martin Sorrell, the former boss of WPP who is today at the head of S4 Capital.

Still, the size of the online advertising pie in the United States is such that even the crumbs left by the GMA triumvirate are most nourishing. The service for ephemeral messages and photos, Snap – which generates more than 70% of its overall turnover in North America – should thus see its advertising revenues jump 40% in 2022 and cross the 5 billion dollar mark at worldwide.

The firm with the white ghost on a yellow background is not an isolated case. Microsoft is well placed to take advantage of the boom in digital advertising via its professional social network LinkedIn – which it bought in 2016 for 27 billion – or its search engine Bing. Proof of its strengthened ambitions in the sector, the Redmond firm bought, in December, adtech Xandr from the telecom giant AT & T, for 1 billion, according to Bloomberg.

The American advertising market will weigh 400 billion dollars in 2026

As for historical media, television will jump 6.2% over one year, to 74.1 billion dollars in the United States this year. A record while its overall market share will nevertheless decline from 25.1% to 23.2% between 2021 and 2022. Audio (radio, podcast) will climb by 9.3% over one year and will almost back to pre-crisis levels.

The only expected losers: the daily paper press (after a recovery of 3.1% last year in the United States) and magazines. The latter will respectively decline by 9.1% and 10% compared to 2021, according to GroupM, which predicts that these two formats will decline continuously over the next five years, across the Atlantic.

The trajectory is the opposite for digital advertising, which should cross the 70% market share mark in the United States in 2025. The following year, the American advertising sector as a whole should cross the threshold of 400 billion dollars (compared to 319 billion in 2022). An acceleration that will have digital formats as its driving force and essence.

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