Online Advertising Market Analysis – Share, Size, and Forecast
Online Advertising Market Overview
The global advertising market is currently in the middle of a strong growth period, forecasted to grow at a CAGR of 6% between 2016-2020. The television advertising segment has long been the dominant force within the industry, however, a paradigm shift of media consumers from print and electronic media to digital media, the evolution of communication technologies, and the time spent online by consumers have led to a substantial rise in online advertising market growth. Digital media is transforming the advertising industry and is currently the fastest growing marketing technique. Earlier, only large corporations opted for digital marketing but many start-ups and SMEs have since adopted digital marketing techniques as the customer engagement rate and success of these campaigns tend to be higher than other marketing strategies. Due to these factors, the online advertising market is expected to reach USD 280 billion by 2020.
Between 2017-2022, global ad spending market size is expected to grow more than USD 160 billion. This increase in market size will be attributable to strong advertising platforms such as Google, Yahoo, and Facebook, which are steadily involved in RTB-based advertising, in turn, fueling the growth of the online advertising market. The incorporation of AR in advertising, increasing use of AI as a tool for advertisement, high adoption of programmatic advertising, and advertisements on wearable devices will be the emerging trends expected to gain traction in the online advertising market through 2022, which will also boost the amount global ad spending.
Online Advertising Market Insights
- Evolution of programmatic advertisement buying, use of AI, and digital native advertising have led to substantial growth of the digital advertising market and huge digital advertisement spending. The digital advertisement spending on mobile in the advanced economies such as the US and the UK was more than 70% and 40% respectively during 2017.
- Social media platforms provide advertisers with efficient targeting alternatives and improved conversion tracking as these platforms cater to user interests. By identifying user interests, advertising agencies can offer their clients with better solutions and increased brand visibility as they can then target an audience that is interested in the specific product or service.
- Online classified advertising enables manufacturers to list their products on normal or featured ad platforms and also allows them to count the number of views for their ads, leading to growing demand for both regular classified ads and featured classified ads.
- With the increasing popularity of audio-visual advertising and rapid shift in the preferred advertising mode from physical to digital platforms, retail advertising on digital screens is growing, due to its consumer-targeting capabilities and sophisticated measurement techniques.
- Creative and responsive email design and personalized emails using big data are critical trends in email marketing. These strategies are being extensively utilized for transactional and marketing emails, particularly by startups and small businesses, to differentiate their advertising from the barrage of marketing emails.
Online Advertising Market Share and Segmentation
Within our online advertising industry research, we provide deep insights into the market landscape, its segments, and their market share. Our research experts segment this market through online advertising format and platform.
Search advertising market
The location-based search and advertising (LBSA) market will grow at a CAGR of approximately 46% by 2020. Location-based advertising market size is growing due to its benefits such as reduced marketing costs and enhanced consumer outreach. Enterprises in industries such as retail, automotive, logistics, and food processing use location-based search and advertisement platforms to minimize their operational costs. The display segment will account for the largest market share through 2020, due to the shift toward infographics and better customer engagement.
Mobile advertising market
The growing popularity of in-app advertisements will be the critical factor driving the growth of the mobile advertising market during 2018-2022. The increasing use of video advertising will also contribute to the market's growth because it is more engaging and gaining popularity among viewers as an effective medium to deliver information. This format also allows real-time interaction and feedback that helps vendors to reach a larger customer base. We forecast the mobile advertising market to grow USD 111 billion between 2017-2022.
Our online advertising market segmentation research offerings include:
- Online Advertising Market by Format
- Search advertising market
- Display advertising market
- Classified advertising market
- Digital video advertising market
- Mobile advertising market
- In-app advertising market
- Email advertising market
- Lead generation advertising market
- Rich media advertising market
- Online Advertising Market by Platform
- Online advertising market for mobiles
- Online advertising market for desktops and laptops
- Online advertising market for smart TVs
We at Technavio, with our comprehensive understanding of the online advertising market, have been monitoring the latest industry trends and developments to create an in-depth online advertising market report portfolio. These reports help our clients identify opportunities within the market and develop effective strategies to optimize their market positions. Our online advertising market reports offer the following insights:
- Online advertising industry overview
- Online advertising industry statistics
- Online advertising market size
- Online advertising market share
- Online advertising market growth
- Online advertising market forecast
- Online advertising market trends
