Meta poised to surpass Google in digital ad revenue for first time, report says

Meta Platforms is projected to surpass Alphabet’s Google in digital advertising revenue globally by the end of 2026 and dethrone the search-engine behemoth in the lucrative business, according to Emarketer.

The Instagram owner’s global net ad revenues are expected to reach US$243.46 billion (S$310 billion) in 2026, ahead of Google’s projected US$239.54 billion, the market research firm said.

Meta’s Advantage+ automated ad suite has been gaining strong advertiser adoption due to its ability to streamline campaign set-up and enhance return on marketing spend.

“In surpassing Google, Meta has essentially had many of its core strategies validated,” said Mr Max Willens, principal analyst at Emarketer.

While Google has other growth avenues, including YouTube Premium subscriptions, its broader business mix could make it harder to outpace Meta in ad revenue.

Analysts have said smaller platforms like Snap and Pinterest remain the most exposed to ad budget cuts during geopolitical uncertainty, as spending concentrates on larger platforms such as Meta and Google.

Emarketer said the driving force behind the change is Meta’s accelerated growth rate, which is forecast to increase to 24.1 per cent in 2026 from 22.1 per cent in 2025. Google’s growth rate is expected to remain steady at 11.9 per cent in 2026.

The social media giant intensified competition in the ad market after launching ads on WhatsApp and Threads, creating direct rivalry with platforms like Mr Elon Musk’s X. Simultaneously, Instagram’s Reels continue to jostle with TikTok and YouTube Shorts within the lucrative short-video market.

Google, Meta and Amazon are projected to account for 62.3 per cent of global digital ad spending in 2026, Emarketer said.

The research firm added that recent court rulings against Meta and YouTube are not expected to materially impact the forecast, which was completed before those verdicts. REUTERS