Digital Advertising Is Increasingly Concentrated Among a Few Winners

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U.S. digital ad spending surpassed $100 billion last year, according to the Interactive Advertising Bureau's latest full-year report. The $107.5 billion marketers spent on digital ads last year was up 21.8% from 2017.

The top 10 digital advertising companies accounted for 75% of total ad spend, up from 72% in 2017. Despite a focus on the duopoly -- Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) subsidiary Google -- losing market share, ad spend is increasingly concentrated among a few winners.

Investors interested in capitalizing on the continued growth of digital advertising need to consider the trends driving the overall growth, as well as the companies best-positioned to win. And based on IAB's findings, it's likely the companies already winning.

Two big trends in digital advertising

There are two things that stand out in IAB's report.

Video advertising is increasingly popular, with spend up 37.2% from the previous year to $16.2 billion. Video ad spend accounted for 15% of all digital advertising in 2018, up from 13% in 2017.

Additionally, ad budgets are still shifting to mobile. Mobile accounted for 65.1% of all digital ad spend last year compared to 56.7% in 2017. Overall mobile ad spend increased 39.7%.
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