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The digital advertisement spending market size is forecast to increase by USD 570.7 million, at a CAGR of 18.51% between 2024 and 2028. In recent years, there has been a significant shift in advertising spending from traditional offline channels to online platforms. This trend is driven by several factors, including evolving consumer demographics and their increasing preference for digital engagement, and the growing use of online classified ad platforms. Modern consumers are tech-savvy and demand convenience, personalization, and real-time interaction. Traditional offline advertising methods, such as print media and billboards, are no longer able to meet these demands effectively. Online advertising, on the other hand, offers targeted reach, measurable results, and the ability to engage consumers in real-time. As a result, businesses are increasingly allocating their ad budgets to digital channels, leading to a 100 word decline in offline ad spending.
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In today's digital landscape, social media platforms play a pivotal role in connecting people worldwide, while video content continues to dominate online engagement. Search engines facilitate access to vast amounts of information across mobile, laptop, and desktop devices, shaping how users interact with healthcare, media, and entertainment content. The proliferation of smartphone devices has expanded the online population, fueling growth in streaming and ecommerce websites. Technology infrastructure supports these advancements, bolstering the online advertising market and digital media consumption. Digital platforms serve as vital online portals in the digital marketplace, where digital video marketing competes with traditional television advertisements. Innovations like multifactor authentication and cryptocurrency underscore efforts in digital security and financial transactions, while digital creative services cater to evolving consumer demands for engaging online experiences. Together, these elements define the dynamic evolution of the digital world and its impact on global connectivity and commerce.
The decline in offline ad spending is one of the key drivers supporting the digital advertisement spending market growth. Ad spending declines in traditional channels such as radio have been a part of a long-standing trend. However, in 2020, the COVID-19 pandemic led to a further reduction in radio ad spending. Due to the implementation of COVID-19-induced lockdowns, fewer people commuted to work. This resulted in reduced daily listenership, which reduced spending on radio ads. For instance, in India, radio ad volumes declined in Q1 2020 by 34% compared to the same period in the previous year. In April 2020, the number of brands advertising on radio in the country declined to 650 compared to 2000 in March 2020. Thus, the decline in offline ad spending will positively impact the growth of the digital advertisement spending market during the forecast period.
The evolution of programmatic advertisement buying is one of the key digital advertisement spending market trends that is contributing to the market growth. With the rise in the number of consumer metrics available for advertisers to target their audience, RTB can be the tool that can enhance the subscriber base for advertisers. In the traditional method of buying a digital advertisement request for proposals, quotes, and tenders, human negotiation was included, whereas programmatic advertisement buying uses algorithms for purchasing display space. Due to the optimized and efficient process in programmatic advertisement buying, some countries are investing in this solution for better and more efficient operations for selling advertisements. Since programmatic advertisement buying can help optimize the buying process of digital advertisements, it can lead to an increase in the adoption of digital advertisements during the forecast period. These factors are fueling the digital ad spending market growth.
Challenges associated with OTT advertising is one of the factors hindering the digital advertisement spending market growth. OTT platforms fail to report the channel a particular ad ran on. Additionally, OTT campaign measurement metrics become superficial due to the obscurity of targeting and attribution. Due to these drawbacks of the OTT format, ad agencies prefer to choose direct advertising over a programmatic approach. As more and more OTT platforms emerge in the market and gain an increased user base, the tracking of fraud becomes a challenge. Thus, it becomes critical for digital advertisers to find advertising partners which eradicate fraudulent activities and help capitalize on the OTT opportunity. These challenges associated with OTT advertising can negatively impact the growth of the global digital advertisement spending market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc. - The company under google services offers advertising such as sales of apps, in-app purchases, digital content products, and hardware.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The display ad segments is estimated to witness significant growth during the forecast period. Display ad refers to the broadcasting of an ad by text, video, or audio on a website or application. It helps advertisers measure website traffic, as they have to pay for promotions displayed alongside the content on the page. Digital ad targets directly business-to-business (B2B) and business-to-consumer (B2C) customers and prospective customers online by matching their internet protocol (IP) address to their physical address.
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The display ad segments accounted for USD 144.60 billion in 2018 and showed a gradual increase during the forecast period. Advertisers are looking for solutions to expand their customer reach by enhancing their approach to reach target customers with display ads. This encourages vendors to offer analytic solutions that help advertisers use analytics for display ads to the relevant customers. For instance, Google is offering analytics solutions with AdWords. Also, to cater to the continuously increasing demand of advertisers, Google is continuously upgrading its analytics solution and adding new solutions to AdWords. Some of the upgrades include a new feature that allows AdWords advertisers to add columns to their campaigns for pages per visit, bounce rates, and average duration. Analytics solution with AdWords is helping advertisers to remarket the product to the relevant customers. Google analytics also gives advertisers a breakdown of performance and could open the door for additional managed placement opportunities. Thus, such factors are expected to improve advertisers' ROI and accelerate their business, which, in turn, will drive the growth of the market during the forecast period.
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North America is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The digital advertisement spending market in North America is expected to grow primarily due to the growth of the market in the US and Canada. The growth of the regional market can be attributed to the increased penetration of smartphones and reliable broadband infrastructure of end-users. The saturation of print newspaper and radio advertising in the region is another major factor for the growth of the regional market. In addition, mobile ad spending is one of the major drivers of the regional market. As a larger population continues to spend more time using mobile devices for daily activities and content consumption, vendors will focus on integrating more marketing activities into mobile devices during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
You may also interested in below market reports:
1. Digital Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast
2. Programmatic Advertising Spending Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast
3. Online Ad Spending Market by Platform and Geography - Forecast and Analysis
In the digital age, search engines are pivotal tools for accessing information across various sectors, including healthcare, transport and tourism, IT and telecom, and more. Businesses leverage visual ads to engage internet users at different market levels, competing with traditional television advertisement and photo video ads. The rise of cryptocurrency has revolutionized financial transactions, influencing strategic campaign development and consumer behavior. The proliferation of internet-connected devices has reshaped marketing strategies, integrating email marketing and adapting to shifts accelerated by the coronavirus pandemic. While digital media gains prominence, traditional print media advertising in print newspapers and magazines still holds influence. Understanding search engine results is crucial for optimizing visibility and reach in today's competitive landscape, where effective digital marketing strategies bridge online and offline consumer interactions, fostering growth and adaptation in a rapidly evolving marketplace.
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Market Scope |
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Report Coverage |
Details |
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Page number |
154 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 18.51% |
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Market growth 2024-2028 |
USD 570.7 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
15.89 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 43% |
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Key countries |
US, China, UK, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Amazon.com Inc., Baidu Inc., Dentsu Group Inc., Epsilon Data Management LLC, InterActiveCorp, LinkedIn Corp., Meta Platforms Inc., Microsoft Corp., Sirius XM Holdings Inc., SXM Media, TradeDoubler AB, Verizon Communications Inc., Xaxis LLC, and Yelp Inc. |
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Market dynamics |
Parent market analysis, Market forecasting 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 |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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