Digital ad revenue is expected to grow
Google (GOOG) is a market leader in the digital ad revenue space. Google’s revenue is expected to be $26.69 billion in 2017. The expected figures for peer companies like Facebook (FB), Twitter (TWTR), Microsoft (MSFT) and Yahoo! (YHOO) stand at $12.14 billion, $2.47 billion, $3.17 billion, and $2.67 billion, respectively, by the end of 2017.
Facebook has quickly become Google’s biggest competitor in the digital market segment. It surpassed $4 billion in revenue for 2Q15. It collected $3.83 billion in ad sales in the same period.
Mobile ad market
According to eMarketer, the mobile digital ad space will exceed $30 billion in 2015—compared to $19.15 billion in 2014. It’s also estimated that digital ad spending will outpace TV sales in the next two years. As of 2019, analysts expect 40% of marketing budgets to be allocated for the digital media space—compared to 35% for television.
Due to a 60% rise on “spots” directed at consumers who are “on the go,” mobile digital spending will outpace desktop ads in 2015. By the end of 2019, almost 70% of digital ad budget will be directed towards mobile advertising. Google and Facebook will be looking to benefit from these trends in the future.
You can get diversified exposure to Google by investing in the PowerShares QQQ ETF (QQQ). This ETF held ~8.10% in the company on August 31, 2015.
You can choose to get more diversified exposure to Google by investing in the SPDR S&P 500 ETF (SPY). SPY held ~2.10% in the company on the same date.