LONDON (ShareCast) - (ShareCast News) - US tech giants Google and Facebook's domination of the digital advertising market is expected to result in the pair taking 54% of UK advertising revenues in 2017.
Google is the largest player in terms of digital ad revenue with a figure of £4.43bn forecast to be taken in in 2017, eMarketer said on Monday.

By 2019, the Alphabet-owned firm is expected to see that revenue grow to over £5bn.

Facebook was the next highest earner for digital ad revenues, as it capitalised on successes with its Instagram platform and is projected to take in £1.87bn this year.

With the total spend on digital ads in the UK standing at £10.89bn this year, that leaves the two US firms as controlling over half the market between them.

This is lower than the 75% of all US new digital ad spending sewn up by the pair in 2015, as has previously been calculated, and lower than their US digital share of 60% that eMarketer forecasts.

"There have been signs of tough times ahead for the UK ad industry," eMarketer senior analyst Bill Fisher said.

"Despite uncertainty around Brexit and struggles among some of the big agencies, digital continues to attract ad spending, with Google and Facebook the biggest beneficiaries. That they're attracting such spend is perhaps a symptom of the wider market concerns, with brands looking to get the biggest reach for their buck-something that Google and Facebook clearly offer."

When WPP recently warned on profits, boss Sir Martin Sorrell said that the digital duopoly were the traditional ad giant's first and third largest media investments, sandwiching The Times and Sun publisher News Corp, with Facebook potentially moving higher this year.

"Google ranks number one in terms of the destinations of our media investments. Facebook ranks third (but) may this year actually become second," he said.

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