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February 20, 2019updated 27 Mar 2019 10:10am

Google’s share of US digital advertising market forecast to fall in 2019, research predicts

By James Walker

Google’s share of the digital advertising market is forecast to fall in the US for the first time this year, according to new analysis.

Digital ad spend will also overtake traditional (print, radio, TV etc.) ad spend for the first time in the US this year, research firm eMarketer has predicted.

US digital ad spend will jump 19.1 per cent to $129bn as traditional spend flounders at $109bn, meaning digital spend will make up 54 per cent of all US ad money in 2019.

But, Google’s share of the online ad market is expected to drop from 38.2 per cent to 37.2 per cent this year.

Meanwhile Facebook’s share is set to grow from 21.8 per cent to 22.1 per cent.

The research estimates that Amazon’s US ad business will grow by more than 50 per cent in 2019, taking its overall digital ad market share to 8.8 per cent.

Digital advertising spend is expected to account for two-thirds of all US ad spending by 2023, according to eMarketer.

Forecasting director Monica Peart said: “Amazon has a major benefit to advertisers, especially consumer packaged goods and direct-to-consumer brands.

“The platform is rich with shoppers’ behavioural data for targeting and provides access to purchase data in real-time.

“This type of access was once only available through the retail partner, to share at their discretion. But with Amazon’s suite of sponsored ads, marketers have unprecedented access to the ‘shelves’ where consumers are shopping.”

Spending on traditional media in the US is expected to take a big hit while digital ad spend soars.

Ad spend on print newspapers and magazines will plunge by 18 per cent this year, according to eMarketer, while TV and radio ad spend will fall by around 2 per cent each.

The eMarketer forecast is built on data from research firms, government agencies, media firms and public companies as well as interviews with publisher executives, ad buyers and ad agencies.

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