Dive Brief:

• EMarketer believes Google will command 40.7% of U.S. digital ad revenues this year, more than doubling the share of its closest competitor, Facebook, per the research company.
• Google’s dominance in search will increase 16.1% to $28.55 billion accounting for around 78% of U.S. search ad revenues in 2017.
• Where Facebook is beginning to shine is in display advertising, where it is expected to reach $16.33 billion for a 39.1% share. With a growth rate of 32.1% in display, Facebook will take display revenue from Google, Yahoo and Twitter. Google’s display revenue is expected to hit $5.24 billion, but its market share will decrease to 12.5%.

Dive Insight:

Marketers have expressed frustration with a digital ad marketplace dominated so heavily by just two platforms — Google and Facebook — as the lack of competition makes it difficult for them to negotiate pricing and other terms. The eMarketer numbers will only serve to reconfirm these feelings. 

One glimmer of hope for marketers has been Snapchat, with WPP CEO Martin Sorrell recently saying it could grow to be the third competitor marketers are hoping for. EMarketer's research would seem to back this up. 

With Snapchat's largely new focus on advertising, eMarketer is projected big growth for the format at 157.8%, reaching $770 million. The large growth percentage can be at least partially attributed to a small starting spot, and Snapchat trails Google and Facebook by a wide margin accounting for just 1.3% of the mobile ad market this year. All of Snapchat’s ad formats are mobile display.

However, Snapchat's growth trajectory is still very much speculation as the platform's advertising offerings are so new. Initial results are just starting to trickle in and, so far, there is not a lot to get excited about for brands, with Snapchat delivering low ROI compared to its competitors, according to a new report from Ad Age and RBC Capital Markets. 

In the mean time, Facebook is trying shoring up its growing role in advertising on a number of fronts. The platform's recent efforts to boost Instagram, for example, by borrowing heavily from Snapchat, appear to be paying off. EMarketer reports that part of Facebook's increase in display advertising is driven by Instagram, which will make up 20% of Facebook’s mobile revenue this year.