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Global Digital Advertising Spends & Growth: Let’s Find Out

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You must be aware that there has been tremendous growth in global digital advertising. Since 2011 across the globe, there have been dynamic shifts in the advertising business. 

Gradually the traditional form of media started facing heavy competition with digital global advertising. 

Due to multiple changes in the advertising industry, global digital advertising came into the limelight and gained popularity. 

And the digital advertising spending worldwide, in 2020 was 378.16 billion US dollars and it is estimated to be 455.3 billion US dollars by the end of 2021. 

India has undoubtedly seen enhancements and amendments in the marketing field. However, Indian companies are yet to get equipped with the new global digital advertising trends and skills to compete on the global front. 

Must Read: Latest digital marketing and advertising trends in 2021 

Here, in this article on “Global Digital Advertising Spends & Growth,” we shall majorly discuss how companies based in the world have been dominating the global advertising business, how covid-19 impacts internet ad spending worldwide, and few factors impacting global digital advertising.

But before we start discussing the two tech giant companies, let’s see a few factors that impact the global digital advertising market. 

So, without any further ado, let’s get started. 

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6 Factors Impacting Global Digital Advertising Market

The growth of global digital advertising is affected by various factors, some of them are – 

  • Extensive Adoption of Smartphones 
  • The emergence of high-speed internet
  • The proliferation of Social media
  • The rise in advertising spends on digital media across various industries
  • Increase in popularity of streaming platforms
  • The rising demand for digital media due to covid-19 

Now, let’s take a detailed look at the impact of covid-19 on global digital advertising. 

Covid-19’s Impact on Global DIgital Advertising

From the past two years, the coronavirus has spread uncontrollably, and governments all over the world are still attempting to contain it by restricting public spaces, schools, and borders. And due to which it has become difficult for many businesses to advertise their products and services through various traditional methods of advertising. 

As a result, all businesses and marketers must adapt their online marketing strategies to promote and advertise their products & services. Furthermore, due to the pandemic, businesses are projected to invest more in digital advertising, fueling market growth.

And according to Interactive Advertising Bureau (IAB), it is estimated to witness approximately a 24% decline in traditional TV advertising in the coming years. And there has also been a huge impact of digital advertising on numerous outdoor advertisements, especially billboards.

The use of billboards for advertising purposes by various brands has been substantially decreased by 30%. The reason being, due to the increase in digital advertising, everyone can now read and view the ads on their phones and other electronic gadgets, and hardly anyone notices billboards, posters, or other types of traditional advertising. As a result, the ad agencies that were dealing with billboard ads had to suffer a significant loss.

Hence, due to all such reasons, the internet advertising market is expected to increase from $359 billion in 2020 to $1,089 billion by 2027, growing at a CAGR of 17.2 % after COVID-19.

Now let’s move on to the two tech giant companies that have been dominating the global advertising business. 

Google & Facebook’s Share in Global Digital Advertising 

Well, you must have understood which two companies we are talking about. 

It’s none other than Google and Facebook. Google is the most valued media owner followed by Facebook.

These two tech giant companies accounted for 28% of global digital advertising expenditure across the media in 2020. And these two companies shared major global digital advertising business revenue by collectively generating INR 18,054.9 crore in gross advertising sales in the year 2020. And it is expected that they will surpass these numbers by the end of 2021. 

According to a report, these two companies captured 64% of all the growth in global digital advertising. You can observe clear dominance by Google and Facebook. Since the time, Google and Facebook launched their advertisement features, there has been a drastic change in the advertising field. 

Facebook and Google Advertising have been prominent over these years. It has boosted the digital marketing industry and played a major role in promoting small and medium-sized businesses. And Alphabet, which is the holding company of Google is the largest media owner in the world. 

Google offers various forms of advertising including search and YouTube. Search Engine Marketing and optimization has been a very famous term aligned with Google. 

Bonus Read: If you are not aware of Search Engine Marketing, then we suggest you read our detailed blog on SEM (Search Engine Marketing) and its benefits

You would be astonished to know how much Google earns through the Global digital advertising business. The answer is US$ 147 billion in FY 2020. 

Google earns almost 2 times more than the second-largest media house Facebook.

Google earned US$ 147 billion in revenue in 2020. While Facebook earns around US$ 84.2 billion, it has a long way to chase Google in the global digital advertising business. It is obvious from the recent trends that, Global Digital advertising has overtaken television to become the world’s largest advertising medium in 2021. 

To a surprise, Twitter has been the fastest growing media owner. Twitter was involved in controversies for not upgrading its advertisement business. Furthermore, the company also re-listed itself as a news-based company. Yet, Twitter managed to increase its ad revenues to 3,207.39 million US dollars in FY 2020. 

Insights from Brand Equity’s Survey 

The United States of America dominates the global digital advertising sector for multiple reasons. It has the largest ad market in the world. Media companies from the United States have invested the most in extending their reach abroad. Also, Silicon Valley innovation has powered the growth of internet advertising. 

 And also one of the China-based media houses Baidu is very famous in the homeland of China. Chinese media owners and Chinese tech giants have been working hard on their toes to promote Chinese items in their own country. 

Hence, the US media houses face competition in China. However, the US-based digital platforms are popular in various other parts of the world. According to a report, Google and Facebook have collectively generated 35% of the world’s advertising revenue in the Financial Year 2020.  

Global digital advertising

According to the graph above, it is pretty evident that Google and Facebook had the largest share in the digital ad revenue generated in comparison to others. Thus, global digital advertising has grown tremendously in the last 2-3 years and is projected to show some even better results by 2025.

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FAQs – Frequently Asked Questions

Q. What is Global Digital Marketing?

Global Digital Marketing, which is also known as E-Marketing, is the use of a wide range of information technology to promote a product or service in the global market and reach your potential global audience. 

Q. How big is the digital advertising market?

The global internet/digital advertising industry was worth $319 billion in 2019 and is expected to grow to $1,089 billion by 2027, with a CAGR of 17.2% from 2020 to 2027.

Q. What are the different types of digital advertising? 

There are various types of digital advertising but the six main types of digital ads are Display, Social media, Native, Search, Video, and Email Marketing.

Q. How much is spent on digital advertising globally? 

Despite the economic impact of the covid-19 pandemic, the estimated global digital advertising spending was 378.16 billion US dollars in 2020, more than the figure in 2019. 

To Conclude

You read a lot about media owners and the revenue they generate. The most noteworthy learning from this article is to know – how huge Google and Facebook are. 

They dominate the global digital advertising industry. You should get an insight into Facebook Advertising. Get acquainted with our basic article on Facebook Advertising.

Not only Google and Facebook, but plenty of other businesses have begun to invest in digital marketing and advertising. Digital marketing has become more of a necessity than an option as a result of the rising demand.

All those companies have realised the benefits of digital marketing and how it will help them to grow their business. 

And now is your turn to transform your business digitally and expand your business globally. Our detailed blog on digital transformation for business will help you out in this. 

We hope this blog was informative and you enjoyed reading the blog. Let us know your thoughts in the comments section below. We would love to hear from you. 

Founder and CEO at IIDE

He is a passionate public speaker and teacher for over 10 years. He has trained over 60,000+ students and 25+ corporates in Digital Marketing via online and offline channels. He is a Harvard alumnus specialising in E-commerce......[Read full bio]

Karan Shah

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