From the Interwebs: How Internet Advertising Can Grow to $600 Billion by 2023
Interesting article out there we came across today…
- Internet advertising currently at $230 Billion in revenues globally last year. This is almost 3x projected increase in 5 years.
- “Both industry and financial analysts have underestimated the potential of internet advertising for years. In 2014, eMarketer estimated that its growth would slow from 20% in 2012 to 10% in 2017, reaching $188 billion, as shown below. In reality, revenue hit $232 billion by its own estimate, exiting at a 21% growth rate.”
- “…rather than slowing, the growth rates of Google and Facebook, who jointly control the majority of ad dollars, has accelerated”
- “As a percent of GDP, global advertising has ebbed and flowed over the past 90-95 years, and today is near an all-time low. In the US, the ratio is at the low end of its 1.0-1.5% historical range, and globally at 0.4%, it has hit its lowest point since at least 2000. It stands to reason that there’s room for expansion in ad spend relative to GDP, especially if that spend can justify itself in terms of return-on-investment, which is internet advertising’s core strength.”
- “Amazon in particular has potential to contribute out-sized growth. Already roughly half of US consumers start their product search on Amazon, bypassing Google’s most important search ads. These shoppers see Amazon’s sponsored product ads which are highly valuable and result in direct measurement of sales. Amazon’s $3 billion ad business is growing quickly and could dampen Google’s search business in the coming years.”
- Article ends up predicting that even $900 Billion is possible five years from now…
Our conclusion: it’s good to be Facebook, Google, or Amazon. For the rest of us trying to sell online, it looks like we’ll be writing those companies checks for a long time to come!