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The Ad spending market share is expected to increase by USD 342.32 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 8.75%
This Ad spending market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers Ad spending market segmentation by type (digital, TV, OOH, and print) and geography (North America, APAC, Europe, South America, and Middle East and Africa). The Ad spending market report also offers information on several market vendors, including Alphabet Inc., Baidu Inc., Burkhart Advertising Inc., Captivate LLC, Clear Channel Outdoor Holdings Inc., Comcast Corp., Daniel J. Edelman Holdings Inc., Fairway Outdoor LLC, Focus Media Information Technology Co. Ltd., JCDecaux Holding, Meta Platforms Inc., Microsoft Corp., OUTFRONT Media Inc., Publicis Groupe SA, Stroer SE and Co. KGaA, The Interpublic Group of Companies Inc., Twitter Inc., Verizon Communications Inc., WPP Plc, and Omnicom Group Inc. among others.
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The increase in the number of Ad-exchange platforms is notably driving the Ad spending market growth, although factors such as high cost of advertising may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the Ad spending industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Ad Spending Market Driver
One of the key factors driving the global Ad spending market growth is the increase in the number of Ad-exchange platforms. Various platforms, such as Google, Yahoo, and Facebook, have encouraged RTB-based advertising. Facebook also launched its ad-exchange platform, FBX, to reap the benefits of RTB-based advertising. However, Facebook shut it down on November 1, 2016, to move to the mobile platform. With an increase in the number of visitors logging into Facebook, the global RTB market is expected to experience significant growth during the forecast period. Apart from social media platforms, beacons are an increasingly popular choice for Ad spending. These devices help customers receive personalized and relevant information. This is among the most sorted forms of advertisement by retailers. Such factors will support the growth of the global Ad spending market in the coming years.
Key Ad Spending Market Trend
Incorporation of AR in advertising is one of the key Ad spending market trends that is expected to impact the industry positively in the forecast period. AR is used in advertisements to demonstrate product features, functionalities, and unique selling propositions (USPs). An increasing number of brands, close to 25%, are showing an interest in incorporating AR technology in advertising. Several brands have already incorporated AR in their ad campaigns. For instance, in 2020, EE, a UK-based mobile network and Internet service provider, enhanced its campaign by launching an immersive web-based augmented reality experience featuring Rita Ora dancing. Following the acquisition of Verizon Media by Apollo Funds in September 2021, the company chief business officer Ivan Markman suggests that investing more deeply in AR experiences can help brands secure a competitive advantage. Such growth strategies will further support the growth of the global Ad spending market in the coming years.
Key Ad Spending Market Challenge
One of the key challenges to the global Ad spending market growth is the high cost of advertising. For instance, for local television stations, advertisers can expect to pay anywhere from USD 200 to USD 1,500 for a 30-second commercial. The highest cost placements for Super Bowl Ads can increase up to USD 4 million. Moreover, an advertiser may pay up to 50% more for a color ad rather than a black-and-white ad. For instance, a full-page ad in the Washington Post newspaper will cost close to USD 163,000. As a result of the high cost of advertising, the global Ad spending market is witnessing a transition toward digital media. The use of digital forms, such as digital magazines and newspapers, along with mediums such as mobile devices and desktops, will incur lower costs compared with print and broadcast advertising. Such factors can limit the market growth in the forecast period.
This Ad spending market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global Ad spending market as a part of the global movies and entertainment market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the Ad spending market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the Ad spending market encompasses successful business strategies deployed by the key vendors. The Ad spending market is fragmented and the vendors are deploying growth strategies such as technological innovation to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The Ad spending market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the Ad spending market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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36% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for Ad spending in North America. Market growth in this region will be faster than the growth of the market in Europe.
The increasing amount of time spent on digital media and the presence of numerous brand managers and advertising agencies will facilitate the Ad spending market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The COVID-19 pandemic hit North America in 2020, and marketing began to reflect the impact of the pandemic in March, when US Ad spending across all media fell to USD 10.5 billion, 17.5% below the spending total from March 2019. However, the Ad spending market recovered above the economic recovery in 2021, after COVID-19 vaccine was made available throughout the region. Thus, the market is expected to recover during the forecast period.
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The Ad spending market share growth by the digital advertising segment will be significant during the forecast period. The rapid adoption of digital platforms by many companies for advertising and marketing purposes, to reach a larger audience to stay competitive in the market, will drive the market growth through the segment in the coming years.
This report provides an accurate prediction of the contribution of all the segments to the growth of the Ad spending market size and actionable market insights on post COVID-19 impact on each segment.
Online Ad Spending market - The market share is expected to increase by USD 241.99 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 10.98%.
Ad Spending Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.75% |
Market growth 2022-2026 |
$ 342.32 billion |
Market structure |
Fragmented |
YoY growth (%) |
7.67 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key consumer countries |
US, Canada, China, Japan, and UK |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Alphabet Inc., Baidu Inc., Burkhart Advertising Inc., Captivate LLC, Clear Channel Outdoor Holdings Inc., Comcast Corp., Daniel J. Edelman Holdings Inc., Fairway Outdoor LLC, Focus Media Information Technology Co. Ltd., JCDecaux Holding, Meta Platforms Inc., Microsoft Corp., OUTFRONT Media Inc., Publicis Groupe SA, Stroer SE and Co. KGaA, The Interpublic Group of Companies Inc., Twitter Inc., Verizon Communications Inc., WPP Plc, and Omnicom Group Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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