Online Advertising Market Overview:
According to the global data generated by the United Nations, there was 50% of the world population or say, 8 billion people using the Internet in 2018 with an anticipated increment in the coming years. Now, this is opening up opportunities in the nascent online marketing market for the advertising agencies. According to the IndustryARC analysts, the online advertising market size had already swelled up to whopping $220 billion to $240 billion in 2018. Furthermore, the market analyst estimates that the demand for online advertising will grow at a staggering CAGR of 37% to 40% during the forecast period of 2019 to 2025.
The major part of the population of North America has access to the Internet that spends a lot of time online. In addition to that, North America has been an advertising hub since the inception of it. Furthermore, there is a tangible growth of ecommerce sector in the region due to which North America leads the regional online advertising market share with 35% to 38% as of 2018.
Online Advertising Market Outlook:
Online advertising which is also called online marketing, Internet advertising, or web advertising, uses Internet and web pages to reach the target customer. Sometimes, when the purchasing is done with software, it is called programmatic advertising. Now, with the previously mentioned upsurge in the Internet users across the globe, people watching television has significantly reduced, and so, the online advertising market revenue has surpassed the one through broadcast television. Online advertising finds applications in social media, E-Commerce, displays, and other media. Now, mobile contains each of the mentioned segments in one single unit, and hence, the target customers prefer to use mobile instead of other sources to access the Internet. Henceforth, the online advertising market will observe the application CAGR in mobile to be an outstanding 50-55%.
Online Advertising Market Growth Drivers:
- The Continuously Catapulting Number of People on Social Media –
According to the Pew Research Center, 53% of the prospective customers across the globe use social media platforms such as Facebook, Instagram, Twitter, and others. Furthermore, the number of people on social media is only going to increase in the coming years. Now, these people spend a substantial fraction of their time on social networks which creates a wide spectrum of customer base with different choices and perceptions. This happens to be a major online advertising marketplace for the advertising agencies as the agencies get to target millions of people with prospects of buying a diverse range of products of different brands.
- The Growth of the E-Commerce Sector –
The E-Commerce sector is growing at an impressive rate. During the previous years after the impetus of the field, customers were a bit skeptical to make a purchase online. However, the time has changed, and more and more people are opting for the online transaction rather than the conventional modes of purchasing. Even the number of people ordering food online is on the rise. This tectonic shift in the purchase pattern is proving to be a boon to the online advertising market. Moreover, the world’s leading E-Commerce giants are leveraging Google AdWords and Pay-per-Click and associating with online advertising agencies to enhance their revenues, which is leading to more opportunities in the online advertising market.
- Easy Accessibility to Customer Demographics and Algorithm Alteration –
Due to the advent of social media and search engines, it has become noticeably easier to identify probable customers. Organizations are constantly reinventing new techniques and altering their algorithms in order to reach their target customers. Furthermore, persuading customers has become subtle and passive which is directly affecting the purchasing decisions of the customers on a subconscious level. So, online advertisers are able to nudge their customers and persuade them to purchase the product, thereby generating good online advertising market revenue.
Online Advertising Market Challenges:
The major challenge in the online advertising market is that the customers are blocking ads on various social media platforms and search engines. Furthermore, these platforms come up with a new algorithm on a regular basis, which makes it a bit difficult for the agencies to realign their marketing strategies in inclination with the changes made on the platform. Additionally, the growth prospects in the market are creating overwhelming competition in the niche.
“However, the increasing number of the Internet users broadening the market size coupled with the market players striving to create flexible marketing strategies in inclination with the intermittent algorithm changes is ameliorating challenges and creating new horizons for them in the online advertising market;” quotes the market expert in the report.
Online Advertising Market Key Players Perspective:
The key players in the online advertising market are Accenture Interactive, PwC Digital Services, IBM iX, Dentsu, and iProspect among others. In April 2018, Accenture Interactive was named as the largest digital network worldwide by Advertising Age.
Online Advertising Market Trends:
- Ogilvy & Mather had made a digital leap into digital adverting in 2016. The reason for the same attributes to the fact the company foresaw its future in digital owing to the extended reach to the target audiences and the online advertising market demand.
- The advanced digital trends like social media influencing and the palpable increase in the customer’s trust in the digital platform are leading to a lot of advertising giants making investments in the online advertising market.
Online Advertising Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the online advertising market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of online advertising market, and their specific applications in social media, E-Commerce, displays, and other media.
Online advertising Market Report: Industry Coverage
The online advertising market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia