REPORT: Facebook, Twitter to Make Up 1/3 of U.S. Digital Display Ad Market by 2017

Facebook and Twitter will account for more than one-third of the digital display advertising market in the U.S. by 2017, according to the latest projections from eMarketer.

TwitterFacebookIconsFacebook and Twitter will account for more than one-third of the digital display advertising market in the U.S. by 2017, according to the latest projections from eMarketer.

eMarketer pegged the U.S. digital display advertising total for 2015 at $27.05 billion, saying that figure will rise to $37.36 billion in 2017, at which point Facebook and Twitter combined will represent 33.7 percent of the market, up from 30.2 percent in 2015.

Facebook makes up the lion’s share, at slightly more than one-quarter in 2015, totaling $6.82 billion, rising to 26.9 percent in 2017.

Twitter will make up 6.8 percent of the market in 2017 after tallying $1.34 billion in digital display ad revenue in 2015, for a 5 percent share.

The shift to mobile is driving both Facebook and Twitter, as eMarketer predicted that mobile will top desktop in the U.S. display ad spending realm for the first time in 2015, soaring to $14.67 billion from $9.65 billion in 2014, while desktop slips to $12.38 billion from $12.56 billion.

eMarketer projected Facebook’s U.S. mobile ad revenue at nearly $5 billion in 2015, jumping nearly 50 percent to $7.53 billion in 2017, and it said nearly 90 percent of Twitter’s 2015 U.S. display ad revenue, or $1.19 billion, will come from mobile, with Twitter’s total nearly doubling by 2017, to $2.29 billion.

As for their competitors, eMarketer projected that Twitter will overtake Yahoo in 2015 as the latter continues its declining trend, while Google will remain in second place behind Facebook, seeing its numbers decline, as well.

eMarketer senior forecasting analyst Martin Utreras said in a release announcing the results:

Many brand marketers are moving direct-response ad dollars from search to display, and social networks are the main beneficiary of this trend. Because consumers share personal information and interests openly on social networks, brands are shifting budgets to reach them there, especially as sites like Facebook and Twitter become more sophisticated in collecting consumer data for more effective ad targeting.

Readers: What did you think of the latest projections from eMarketer?

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