Khaberni - It is expected that "Meta" will surpass Google - a subsidiary of Alphabet - to become the global leader in digital advertising, an unprecedented achievement for the social networking company.
According to eMarketer, Meta is expected to surpass Google in net advertising revenues this year, reaching more than $243.46 billion, surpassing Google's expected revenues of $239.54 billion.
The company's estimates include revenues after traffic acquisition costs and other content acquisition costs, such as the money Google shares with content creators, according to a report by "The Wall Street Journal" reviewed by "Al Arabiya Business".
Meta's advertising activity is experiencing significant growth, supported by the success of new advertising formats, including the short video format "Reels", as well as greater support provided by artificial intelligence.
Meta advances
Max Weilenz, chief analyst at the research company, said that "Meta" has exhibited "great patience" in establishing strong usage habits among users for products such as Reels, the microblogging platform "Threads", and the messaging platform "WhatsApp", before starting to introduce advertisements on them.
"eMarketer" expects Meta's global advertising growth to rise from 22.1% in 2025 to 24.1% this year.
This expectation is striking, as analysts believe that Meta's recent advertising growth is unprecedented, especially with their expectations of the company's growth slowing down with its significant expansion.
In contrast, Google's global growth rate is expected to remain stable at 11.9% this year.
"Meta" stated that its AI-based recommendation system has increased the viewing time of "Reels" in the United States by more than 30% during the last quarter compared to the previous year, allowing the platform to display a higher number of ads.
"Meta" previously stated that "Reels" are on track to generate $50 billion over the next 12 months, according to The Wall Street Journal.
In addition, artificial intelligence is radically changing the way some advertisers create ads displayed on Meta platforms. The company recently announced that the annual revenue rate of its artificial intelligence video production tools reached $10 billion in the fourth quarter.
However, this accelerated performance, supported by artificial intelligence, comes at a high cost; it is expected that Meta's capital expenditures will reach $135 billion this year.
"Google"
Google's advertising business includes its core search platform, YouTube, and the Google Ad Network, which displays advertisements on third-party sites, along with other advertising initiatives.
Despite retaining its strong hold on the very lucrative search market, Google is facing increasing competition as companies like Amazon capture a portion of the market share.
This is partly because many consumers now start product searches directly on an e-commerce platform.
"eMarketer" predicted that Google's share of the search advertising market in the United States will be 48.5% this year, the first time it has fallen below 50% in more than a decade.
Furthermore, it's expected that new companies, including artificial intelligence companies like OpenAI and social media companies like TikTok, will reshape the search market in the coming years.
Global digital advertising market
Despite the shift in digital advertising leadership, the broader market remains concentrated around a limited number of companies.
It is expected that the dominance of Meta, Google, and Amazon in the global digital advertising market will be enhanced this year.
"eMarketer" forecasts that the combined market share of these companies will rise to 62.3%, compared to 59.9% last year, which predicts a tightening grip on the digital advertising market.
