Internet Ad Spending to Touch $204 Billion Globally in 2017 

Digital ad spend to overtake television in 2017. Google and Facebook account for 20% of the pie according to Zenith.

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Tech News
2 min read
Internet ad spending will overtake television in 2017. (Photo: iStock)

Companies are likely to spend more on Internet advertising in 2017 than they will on television, according to a report by media agency Zenith. Also, Alphabet, Google’s parent company, got the largest share of global advertising expenditure in 2016, followed by Facebook.

Together, Google and Facebook account for 20% of the advertising pie, according to Zenith’s Top 30 Global Media Owners report.

A list of the Top 30 Global Media Owners from the Zenith report. (Photo: <b>The Quint</b>)
A list of the Top 30 Global Media Owners from the Zenith report. (Photo: The Quint)

What is interesting is the rise in Internet advertising or digital ad spending by companies. From being less that $100 million in 1995, when the internet began to spread, digital spending has touched $181 billion in 2016.

At the same time, the expenditure on television advertising is flat-lining. In 2017, Zenith estimates that internet advertising will touch $204 billion globally, while advertising on television will be about $191 billion. And the gap is set to increase, with digital gaining significantly.

Internet advertising overtakes TV this year. (Photo: <b>The Quint</b>)
Internet advertising overtakes TV this year. (Photo: The Quint)

Google raked in $79.38 billion in advertising revenue in 2016, while Facebook managed to get about $26.89 billion. The total global advertising pie in 2016 was estimated at $533 billion, of which the top 30 companies accounted for $236 billion, which is about 44% of the pie.

Baidu, China’s answer to Google, was in the fourth spot with $10.36 billion in ad revenue.

Alphabet accounts for 15% of the total advertising pie. (Photo: <b>The Quint</b>)
Alphabet accounts for 15% of the total advertising pie. (Photo: The Quint)

Even though Twitter ranks at 30, in terms of percentage growth, it has started gaining significantly. Its ad revenues increased by 734% between 2012 and 2016 according to the report.

Of the top 30 media companies, seven are pure Internet companies –Google, Facebook, Twitter, Verizon, Yahoo, Microsoft and Baidu.

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