US Digital Advertising Market Revenue Surpasses Traditional Media for the First Time

This Year’s Digital Advertising Market Revenue Accounts for 51% of the Total
Especially Facebook, Google, and Amazon Dominate the Digital Advertising Market

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] For the first time ever, the revenue from the U.S. digital advertising market has surpassed the combined revenue of traditional media such as TV and newspapers.

On the 1st (local time), The Wall Street Journal (WSJ), citing data from Group M, a subsidiary of the multinational advertising company WPP, reported that this year, the U.S. digital advertising market revenue reached $111 billion (approximately 122.6439 trillion KRW), accounting for 51% of the total U.S. advertising market. The total U.S. advertising market this year is estimated at $214.6 billion (approximately 237.9 trillion KRW).

In particular, Google, Facebook, and Amazon were found to account for two-thirds of the digital advertising market.

Despite controversies over advertising boycotts, Facebook's advertising revenue in the third quarter of this year increased by 22% compared to the same period last year. Google recorded $37.1 billion, up 10%, and Amazon recorded $5.4 billion, up 51%.

WSJ analyzed that the fact that digital advertising revenue now accounts for more than half of the total advertising market is partly due to the impact of the COVID-19 pandemic that emerged earlier this year. Advertisers, facing economic setbacks and forced to reduce advertising budgets, turned to digital advertising, which allows more efficient targeting of core consumer groups.

Small and medium-sized enterprises with limited advertising budgets showed even greater interest in digital advertising.

Group M evaluated, "Even as the advertising market is going through a dark period, the digital advertising market has shone brightly."

This growth trend is remarkable, as just three years ago, the digital advertising market accounted for only one-third of the total U.S. advertising market.

It is analyzed that the growth of the digital advertising market will continue regardless of the COVID-19 situation in the future.

The U.S. advertising market is expected to grow by 12% next year to $240 billion (approximately 266 trillion KRW), with digital advertising market revenue projected to reach $130 billion (approximately 144 trillion KRW), accounting for 54% of the total.

At that time, advertising revenues from the four major traditional media?TV, newspapers, radio, and magazines?were similar to those of online platform advertising revenues, but this year they have decreased to 21%.

Group M forecasted that the TV advertising market will rebound by 6.6% next year, but the newspaper advertising market is expected to shrink by 12%.

This content was produced with the assistance of AI translation services.