Can Facebook overtake Google

Digital advertising on Google, Facebook overtook traditional media in Austria in January

It is initially a snapshot for a month, but: According to data from the Ministry of Finance, in January 2021, for the first time in Austria, more money was spent on advertising at international digital companies such as Google / Youtube or Facebook than on advertising in traditional media.

5.9 to 5.4 million

For January 2021, according to the Ministry of Finance, 5.4 million euros in advertising tax were paid, but 5.9 million euros in digital tax. Digital tax must be paid by corporations from 750 million euros global sales or from 25 million online advertising sales in Austria. No Austrian media company is affected. Advertising tax is payable for placements in classic media such as TV, radio, print and for brochure advertising; Online advertising is exempt from this tax.

Both taxes amount to five percent, and both are to be paid two months after posting. The Ministry of Finance publishes the taxes on bookings around January in March *.

With the taxes you can roughly extrapolate the advertising volume (here including the five percent taxes).

Classic from 153 to 113 million in January comparison

In January 2020, the advertising volume calculated with the advertising tax for traditional media was around 153 million euros. In January 2021, the extrapolation points to around 113 million euros.

The digital tax in turn - 5.9 million - can be extrapolated to around 124 million euros in advertising volume in January for Google, Facebook and Co in Austria. A year ago it was four million digital taxes and thus around 84 million euros in advertising volume for international digital groups in January 2020 in Austria.

38 percent of the advertising volume for digital giants in 2020

For advertisements in the 2020 calendar year, the Ministry of Finance received 92.7 million euros from advertising tax and 56.5 million euros from digital tax. This results in around 38 percent market share for Google, Facebook and Co in Austria and around 62 percent for traditional media including brochure advertising, but without online advertising. **

As early as the calendar months from October to December, digital advertising increased noticeably among international corporations. For November and December the digital tax brought in 6.7 and 6.8 million euros respectively; the advertising tax 9.6 and 9.3 million.

Online advertising in Austrian media makes up around seven percent of the total volume - according to gross calculations by the advertising observers from Focus Research.

Even if you add this figure to the projected net advertising volume according to the advertising levy in January, the classic, including the prospectus, remains just below the digital advertising volume this month.

World advertising market leaders Google and Facebook

The Alphabet Group with Google and Youtube has long been the global advertising market leader with around 122 billion euros in advertising revenue in 2020, ahead of Facebook with around 70 billion euros in advertising revenue.

For many decades, advertising was the most important source of income for traditional, especially journalistic, media in order to finance their content. (fid, May 13, 2021)