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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

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 Amazon.com (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)

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