Brands are set to spend more money advertising with Facebook and Google than they are across the entire global TV sector this year according to new figures from the industry body Warc.
According to the firm, advertising revenue for Facebook and Google's parent company Alphabet is forecast to reach $231.9bn in 2020.
TV ad spend is set to rise by 2.5 percent this year to reach 29.2 percent of all global advertising. However, this increase will come as a result of the 2020 US election which will see over $4bn spent on promoting presidential campaigns.
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Brands will spend $192.6bn advertising on TV this year which marks the first time that companies have spent more advertising with Facebook and Google than they have on TV.
Global advertising
In 2020, overall global advertising spend is set to rise by 7.1 percent to reach $600bn, thanks in part to 13.2 percent growth in online campaigns. Facebook and Alphabet are set to take 35 cents in every ad dollar spent this year.
Managing editor at Warc, James McDonald explained that the amount spent on internet ads has risen significantly since 2015, saying:
“Internet ad growth has been far stronger than the state of the global economy would suggest, rising seven times faster on average since 2015. But, regulation aside, online platforms are bound by the law of large numbers, and revenue growth is easing for key players like Alphabet and Facebook.”
While the tech giants will surpass TV ad spending for the first time this year, Warc's figures also showed that traditional media is expected to reach record growth of 1.5 percent to reach $324.2bn this year which marks the first rise since 2011. This growth will likely be boosted by the US presidential election campaigns and the Tokyo Olympics.
However, Warc's figures do not include the potential impact of the coronavirus outbreak which has the potential to result in a “notable impact” if large events such as the Olympics or the Euro 2020 tournament are canceled or postponed.
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