October 11, 2021

GOOG

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Sources and Background

32 sources at full-service and digital advertising agencies in the United States (21) and Europe (11), comprising 13 search specialists (8 in the United States and 5 in Europe), 7 video specialists (3 in the United States and 4 Europe) and 12 search and video specialists (10 in the United States and 2 in Europe)

Repeat Sources 24 (15 in the United States and 9 in Europe) from OTR Global’s prior research

Interviews Sept. 17 through Oct. 7

Averages Straight

Advertisers Seek Out Search, YouTube
Spending on Google search and YouTube remained robust during 3Q21 because of positive ROI fundamentals and strong demand for search and digital video, and Apple’s iOS 14 privacy update caused a surge in search and YouTube demand.

  • Search: U.S. ad spending up 27%–30% yy in 3Q21 (vs. up 36%–39% in 2Q21, up 17%–20% in 1Q21), expected up 24%–27% in 4Q21; European 3Q21 spending up 28%–31% (vs. up 68%–71% in 2Q21); growth moderation blamed on tough comps
  • YouTube: U.S. ad spending up 33%–36% yy in 3Q21 (vs. up 40%–43% in 2Q21, 26%–29% in 1Q21), expected up 28%–31% in 4Q21; European sources reported robust 3Q21 yy growth trends
  • AMZN: U.S. ad spending up 49%–52% yy in 3Q21 (vs. up 60%–63% in 2Q21, 48%–51% in 1Q21), expected up 39%–42% in 4Q21; AMZN not taking share from GOOGL
  • Area to Watch: AAPL’s iOS 14 privacy update pressuring FB measurement, helped drive spending on GOOGL search, YouTube in 3Q21, expected to continue to help in 4Q21.
By Robbie Scott
TMT