The Online Advertising Market was valued at USD 304.0 billion in 2019 and is expected to reach USD 982.82 billion by 2025, at a CAGR of 21.6% over the forecast period 2020 - 2025. The increasing technological advancements coupled with increasing digital spending by enterprises is expected to drive the online advertisement market over the forecast period.
- Online advertising is defined as the marketing advertisements, which are delivered through the Internet, on both desktops and mobiles. There are different types of online advertising such as banner advertising, video advertising, search engine advertising, and social network advertising.
- Over the years technological developments with regards to the internet combined with its increasing commercial use and the rapidly growing number of Internet users across the globe have not only shaped the evolution of online advertising and produced different forms of digital advertising, but also new advertising business models and new market levels and players.
- The users on social media such as Facebook, Instagram, and Twitter are exploding every day, and the companies are also collecting crucial data about user’s personal information, product search, and usage pattern and initiating personalized and targeted ads that are useful for the user.
Scope of the Report
Online advertising is a marketing strategy adopted by various organization which involves the use of the Internet as a medium to obtain website traffic and target and deliver marketing messages to the right customers.
Key Market Trends
Mobile Platform to Witness High Growth
- The number of smartphone users are exploding across the world owing to which the advertisers are more focused on offering mobile web-based advertisements which are expected to have a positive impact on the market growth.
- This tremendous shift towards smartphone has compelled the industry players to focus ads on the mobile platform than desktops or laptops as consumers are widely preferring smartphone devices over laptops or desktop, due to the convenience, portability, and similar operations can be performed on mobile devices with ease.
- Furthermore, through smartphone web-based ads, the company will not only generate leads but it also helps in understanding consumers usage pattern. This will help in enhancing the advertisement thereby having a positive impact on the market growth.
North America Occupies the Largest Market Share
- With the rapidly increasing investments associated with digital ads, particularly, online advertisements, are expected to drive the growth of the market studied in the North American region. Moreover, the region consists of highly aware and matured consumers, in terms of smartphones usage and online activity, which creates many opportunities for advertisers.
- Furthermore, e-commerce giants in the region, such as Amazon, is investing heavily in the region to increase its market share. Many users in North America are now searching for products more on Amazon than on Google, compelling advertisers to invest in online ads in the company.
- Notably, advertisers are likely to spend more on online advertisements than any other medium in the North American region, due to the presence of large and potential audiences online.
The online advertising market is highly competitive owing to the presence of many large players in the market operating on a global scale. The market appears to be moderately concentrated with major players adopting key strategies like mergers and acquisition, service innovation. Some of the major players in the market are Google LLC, Facebook, Inc., Twitter Inc. among others.
- September 2018 - Twitter, Inc. announced more than 50 new media partnerships, to expand its premium video content offering, in the Asia-Pacific region, including Channel 7, Buzzfeed, Vice, SBS, and Bloomberg. The partnership will provide brands access to its massive community, on the platform.
- June 2018 - Google LLC rebranded their advertising business which expands the capability to diverse small scale businesses thereby enabling to reach more consumers as compared to the existing base.
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