Ad spending surge makes Big Tech bigger

2 minute read

The logos of mobile apps, Google, Amazon, Facebook, Apple and Netflix, are displayed on a screen in this illustration picture taken December 3, 2019. REUTERS/Regis Duvignau

Register now for FREE unlimited access to

NEW YORK, June 10 (Reuters Breakingviews) - Get ready for even more ads in your social media feeds. GroupM, the media investment arm of WPP, revised its 2021 forecast for how much companies will spend on advertising in the United States and is now expecting growth of 22% year-over-year versus the prior 15% increase. Excluding political campaigns, the total $276 billion ad haul is $37 billion more than what was spent in 2019.

A rise in newly-public companies, from Airbnb (ABNB.O) and to the hundreds of companies merging with SPACs, is fueling some of the uptick. They have mindshare to grab and profit estimates to hit. The beneficiaries are Alphabet’s (GOOGL.O) Google, Facebook (FB.O) and (AMZN.O), which had knockout first-quarter results read more . The trend isn’t expected to abate: Digital ad growth is eating up so much share that in five years, GroupM reckons it will represent 69% of the total U.S. ad market. Antitrust watchdogs with Silicon Valley in their sights will have even fatter targets to aim for. (By Jennifer Saba)

On Twitter

Register now for FREE unlimited access to

Capital Calls - More concise insights on global finance:

Tech IPO scepticism spreads to France read more

Grab spotlights SPAC deal growth forecast folly read more

GEO jumps the prison wall read more

UPS "better" may be just as hard as "bigger" read more

Amazon’s plastic surgery read more

Register now for FREE unlimited access to
SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS: <a href="" target="_blank"></a> | Editing by John Foley and Amanda Gomez

Our Standards: The Thomson Reuters Trust Principles.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.