Decline in travel advertisings hit Google advertising revenues, as industry becomes ‘triopoly’: tracker
Google is expected to see its first decline in US ad revenues this year seeing that the coronavirus pandemic hits travelling advertising, market tracker said Monday.
New research by eMarketer indicates Google it's still leading digital advertising but with a smaller show as the marketplace evolves into a “triopoly” with Facebook and Amazon.
Google’s net US digital advertising revenues will drop 5.3 percent to $39.58 billion to bring its industry share right down to 29.4 percent, based on the eMarketer forecast which was sharply revised as a result of pandemic.
Google’s decline is going to be “primarily as a result of a sharp pullback on travel advertiser spending, which before has got been heavily concentrated over Google’s search ad goods,” said eMarketer analyst Nicole Perrin.
“Travel offers been the hardest-hit industry during the pandemic, with intensive spending declines of any market. E-commerce-related ad spending has also been dampened to some extent: Amazon reportedly pulled its advertisings from Google search earlier this year as it struggled to meet customer demand because of its e-commerce services.”
A big the main decline will come from “search marketing,” or paid text messages deployed by Google when a user enters a search query.
Search ad revenue, in which travel is a significant component, is likely to stop by 7.2 percent in america, eMarketer said.
Facebook is likely to see growth found in its US advertising revenues of practically five percent to $31.43 billion, driven by Instagram, based on the report. That could give Mark Zuckerberg’s organization a 23.4 percent marketplace share.
Amazon, meanwhile, is extending its strong growth in online advertising with an expected 23.5 percent rise to $12.75 billion, putting its marketplace share at 9.5 percent, eMarketer said.
Until recently, analysts had described the digital advertisement market as a duopoly dominated by Google and Facebook, but Amazon has been growing quickly.
Google has been developing at a slower charge compared to the overall digital ad market since 2016, “ which means this year can continue a style of Google losing digital advertising market share in the US,” Perrin said.
