Google and Facebook dominated the online advertising in the third quarter this year as global online advertising revenue growth reached a record 29.6 percent, market research firm Forrester said on Tuesday. Google was by far the biggest contributor to market growth, with an additional $4.2 billion in spending compared to a year ago -- 40 percent of the $10.5 billion growth in spending for 13 digital media companies.
With a year-over-year growth rate of 21.4 percent, Google's ad growth was the fastest in at least six quarters. The Forrester's Digital Marketing Tracker looked at 13 digital firms which included Google, Facebook, Alibaba, Baidu and Tencent, together constituting more than 75 percent of the online advertising market. "At the moment, Google appears to be dealing just fine with challenges like the unintentional placement of YouTube advertisements next to questionable content and the encroachment of Amazon into eCommerce advertising," the report added.
While Facebook had been predicting its ad revenue to decelerate in 2017, it actually saw strong growth of 48.8 percent, which was in line with previous quarters and actually a slight acceleration from 46.9 percent in Q2 2017. China-based search engine Baidu suffered from the increased Chinese government regulation of healthcare-related ads on search platforms starting in May 2016, resulting in an average quarterly decline of 6.5 percent.
However, it now appears to be on the path to rehabilitation, with the growth of 22 percent in Q3 2017 helped by "a recovery in search and strong news feed monetisation." Snap, the parent company of Snapchat, continues to be a disappointment with only 0.5% of the global market, and its revenue is already decelerating sharply - down to 62.2 percent after growing at an average of 329.9 percent in the prior four quarters.
Despite the return of Jack Dorsey more than two years ago and the implementation of strategies for improving engagement, Twitter seems to be struggling to
hold its ground. "Even with more video content, longer tweets, and improved monitoring, Twitter still experienced a 7.7 percent decline in Q3 2017 - its fourth straight quarter of decline," the report added.
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