The pandemic of sars coronavirus will be an unexpected effect this year: the advertising revenues of Google on its first market, the United States, will go down for the first time in the history of the internet giant, which dominates the market with its search engine and its video platform YouTube.
According to projections from eMarketer, the advertising revenue in addition to-Atlantic the principal subsidiary of Alphabet is expected to decline to 5.3% this year, while the market as a whole should grow by 2%. This is the first time that Google has stalled since 2008, when eMarketer has begun to measure the market of online advertising. The firm of Mountain View should then resume the path to growth by bouncing back strongly in 2021 (more than 20% expected) and 2022 (+11.8 per cent).
In detail, the advertising revenues Google should reach nearly 39.6 billion, compared to 41.8 billion garnered last year. In 2018, those revenues had reached $ 36.5 billion. These are not the activities of the régie de YouTube that will be impacted by the health crisis that hit the United States since their revenues are expected to increase. This is the income related to the sale of keywords on the Google search engine ("search"), which will drop to 7.2%, according to data from eMarketer. Main explanation: the activity of "search" is particularly exposed to markets of tourism and travel (Expedia, Booking...), which are the most affected by the health crisis, and has, in consequence, strongly reduced their investments online.
Amazon, the grand prize winnerThe main rivals of Google should, however, see their advertising revenues grow by 2020, and this in spite of the pandemic. On the american market, those of Facebook (Facebook, Instagram, Messenger, WhatsApp) are expected to increase 4.9%, 31, $ 4 billion. A brake all the same, since Facebook had seen its revenue grow by 26% in 2019.
For its part, Amazon should be the big winner among the major platforms, with advertising revenue could jump by 23% in 2020, to $ 12.7 billion. Is the fastest-growing giant in the field of e-commerce since it began to unfold in the online advertising. Amazon, like Facebook, are respectively carried by the boom of e-commerce as a whole, and by the rise of social networks.
as a Result of these "movements" on the advertising market in the u.s., the market share of Google is projected to be 29.4% in 2020 (compared to 31.6% in 2019), while Facebook would be 23.4% (22.7 per cent in 2019) and that of Amazon to 9.5% (7.8% in 2019). Oligopoly (62,3% of the market) remains in the hands of the same, but with spreads tightened.
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