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Google will stay atop U.K. digital ad market: study

N,.Y.-based independent forecaster eMarketer projects that the search giant will take in approximately 40% of the U.K.'s digital ad spend annually through to at least 2016.
July 7, 2014

Google will remain the U.K.’s No. 1 digital ad publisher this year by a wide margin, according to a forecast released by eMarketer last week. It estimates that the search giant will increase net digital revenues in the U.K. by 16% this year, based on higher-than-expected earnings reported in Q1 2014. It also says that Google will take in approximately 40% of the U.K.’s digital ad spend annually through to at least 2016.

Additionally, eMarketer forecasts that Google’s display ad business (a category that includes video) will net $868.8 million in the U.K. this year, representing a 38% increase over last year. While this increase dwarfs the growth in search profits, percentage-wise, search will still make up the bulk of the company’s ad earnings there, bringing in a projected $3.7 billion in 2014.

eMarketer estimates that Google will earn 23.1% of the U.K.’s total net display ad revenue this year, putting it slightly ahead of Facebook, which will earn a projected 22.1%. Twitter is expected to remain far behind, with 3.7%. However, Twitter’s earnings will grow dramatically this year in the U.K., according to the projections, reaching $151.4 million this year in that market – more than double last year’s earnings – with more than $140.8 million coming from ads.

Meanwhile, it projects Facebook’s display ad revenues will grow a whopping 43% in the U.K. this year, to an estimated $909 million. Facebook recently purchased programmatic ad-buying company LiveRail, further bolstering its investment in video advertising, which includes the launch of an embedded video ad option for advertisers.

eMarketer’s projections measure net digital ad revenues after traffic acquisition costs paid to partner sites.

About The Author
Todd is StreamDaily's U.S. West Coast Correspondent. He has written for a wide range of publications, including The Hollywood Reporter, Variety, the Los Angeles Times, the New York Post, NylonGuys and, yes, even the Weekly World News. Earlier in his career, he served as senior editor for the pioneering alternative movie magazine Film Threat. You can reach him at toddrlongwell[at]gmail.com or on twitter @toddlongwell1

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