Skip to content
Subscriber Only
Politics
Equities Outlook

Facebook and Google Face ‘Supercharged’ Regulatory Risk in 2020

  • Online ads expected to eclipse non-digital in size next year
  • Facebook analysts have warned of 40% downside from regulation
Video player cover image
Top Senate Democrats Push for Stiffer Penalties in Privacy Law

The digital advertising market is expected to hit a milestone in 2020, providing a tailwind for industry-dominating names like Facebook Inc. and Google-parent Alphabet Inc. However, that growth is widely expected to be met with growing scrutiny from regulators on a number of major issues.

According to BofA, global online ad penetration levels are expected to grow to 52% next year from 48% in 2019, thereby surpassing the amount spent on non-digital advertising. The firm expects $144 billion to be spent on digital ads next year in the U.S. alone, a forecast that implies 16% growth from 2019 levels.