NEWS20 May 2022

Tech firms’ global ad spend rises

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UK – Advertising spending by the world’s largest technology firms reached $46.6bn in 2021, accounting for 6% of global advertising spending, according to figures from international marketing intelligence business Warc.

Amazon logo on smartphone

The figures, which are based on data from media owners and Nielsen, said that the advertising spend by large tech firms was up 49.4% year-on-year.

If growth continues at the current rate, it mean that the world’s eight biggest tech platforms – Alibaba, Alphabet (Google), Amazon, Baidu, Meta (Facebook), Microsoft, Netflix and Tencent (WeChat) – would account for 10% of global advertising by 2030.

Warc found that the biggest tech firms accounted for more than a tenth of global advertising spending growth in 2021, and were the faster growing category included in Warc’s analysis.

Amazon was the largest spender on advertising in the world, investing $16.9bn in ads, the most ever spent by a single company within a 12-month period and 55% up from 2020.

Alex Brownsell, head of content at Warc Media, said: “Big Tech businesses have come a long way from being ad investment sceptics, to ranking among the biggest-spending advertisers in the world. As their dominance of the mobile-first digital commerce marketplace increases, so too their share of total global ad spend is likely to grow.

“It underscores that, while digitally-native brands can succeed in the short term without the support of ad spend, long-term success often depends upon a willingness to invest in performance-enhancing and brand-building advertising.”