According to their earnings reports, Google, Facebook and Youtube generated a cumulative $63.3 billion in ad revenue in Q3 2020. Global ad spend surged during the quarter as well, increasing by 56.4% according to Social Bakers.
Global Ad Expenditure to Drop by 9% in 2020 as Digital Ad Spend Increases by 6%
Based on the research data analyzed and published by Comprar Acciones, Google’s total revenue for Q3 2020 was $46.2 billion while its ad revenue totaled $37.09 billion, up from $33.79 billion in Q3 2019.
YouTube’s ad revenue was $5.04 billion, up from $3.80 billion in Q3 2019, an increase of 32%. According to Statista, YouTube’s ad revenue went from $4.72 billion in Q4 2019 to $4.04 billion in Q1 2020. It slumped further to $3.81 billion in Q2 2020.
Facebook’s revenue for Q3 2020 was $21.5 billion, up by 22% year-over-year (YoY). From this amount, ad spend was $21.2 billion, nearly 99% of the total. It had increased from $17.4 billion in Q3 2019.
In total, the three tech giants generated $63.3 billion in ad revenue in Q3 2020.
On the other hand, for Amazon, its total revenue in Q3 2020 was $96.1 billion, up by 37% YoY. From this amount, ad revenue was $5.4 billion, up by 51% YoY. Comparatively, ad-driven Twitter, Snap and Pinterest raked in slightly less than $2 billion.
According to a Zenith report, global ad expenditure will decline by 9% in 2020. However, in 2021, it will recover, posting a 5.8% gain thanks to the Tokyo Summer Olympics. Also, digital ads will contribute an estimated 51% to global ad spend in 2020 based on the report.
Another study made by IAB states that digital ad spend will grow by 6% in 2020 while traditional ad spend will drop by 30%. Paid search will grow the fastest, at 26%, and social media ad spend will increase by 25%. Digital video will soar by 18% and digital display by 15%.