Meta expected to unseat Google as world’s largest digital-ad player

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🗞️ Driving the news: Meta Platforms is projected to surpass Alphabet’s Google in 2026 to become the world’s largest digital advertising company by net ad revenue, according to forecasts from Emarketer

🔭 The context: Meta’s ad revenue is expected to reach $243.46 billion in 2026, slightly ahead of Google’s projected $239.54 billion
• The shift reflects strong growth from Meta’s platforms, including Instagram, Facebook, Threads and WhatsApp, as well as the expansion of short-form video advertising on Reels
• Artificial intelligence has also improved Meta’s advertising tools and recommendation systems
• The company reports that AI-driven recommendations increased Reels watch time in the U.S. by more than 30%, enabling it to serve more ads
• Meanwhile, Google’s ad growth is slowing as competition increases from platforms such as Amazon and emerging AI-driven search alternatives.

🌍 Why it matters for the planet: The rapid growth of AI-powered advertising platforms requires large-scale computing infrastructure and data centers, which significantly increase electricity demand
• As companies expand AI capabilities and digital services, the environmental footprint of the digital economy, particularly energy use and associated emissions from data centers, becomes an increasingly important sustainability challenge

⏭️ What’s next: Meta plans to continue expanding AI-driven advertising tools, though the strategy comes with heavy investment

• The company expects capital expenditures of around $135 billion in 2026, largely tied to AI infrastructure and computing capacity

📈 One stat: Meta Platforms, Google and Amazon together are expected to control 62.3% of the global digital advertising market in 2026, up from 59.9% in 2025

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