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The digital advertisement spending market share is expected to increase by USD 523.45 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 17.47%.
This digital advertisement 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 digital advertisement spending market segmentations by type (display ad, search ad, and others) and geography (North America, APAC, Europe, South America, and Middle East and Africa). The digital advertisement spending market report also offers information on several market vendors, including 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 among others.
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The decline in offline ad spending is notably driving the digital advertisement spending market growth, although factors such as challenges associated with OTT advertising may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the digital advertisement spending industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Digital Advertisement Spending Market Driver
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.
Key Digital Advertisement Spending Market Trend
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 the 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 in optimizing 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.
Key Digital Advertisement Spending Market Challenge
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.
This digital advertisement 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 digital advertisement spending market as a part of the global advertising 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 digital advertisement 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 digital advertisement spending market encompasses successful business strategies deployed by the key vendors. The digital advertisement spending market is fragmented and the vendors are deploying organic and inorganic growth strategies 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 digital advertisement 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 digital advertisement 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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39% of the market's growth will originate from North America during the forecast period. The US is the key market for digital advertisement spending market in North America. Market growth in this region will be slower than the growth of the market in other regions.
The increased penetration of smartphones and reliable broadband infrastructure of end-users will facilitate the digital advertisement 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
In 2020, the COVID-19 pandemic positively impacted the regional digital advertisement spending market. Moreover, factors such as a surge in the adoption of smartphones, tablets, and desktops and the subsequent increase in digital ad spending will drive the growth of the regional digital ad spending market during the forecast period.
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The digital advertisement spending market share growth by the display ad segment will be significant 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 to 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. Direct IP targeting helps in displaying ads to a specific business or household as well as in a given location. Thus, the global digital advertisement spending market is expected to grow during the forecast period, as it helps advertisers to increase conversion per digital ad and engages a mass audience.
This report provides an accurate prediction of the contribution of all the segments to the growth of the digital advertisement spending market size and actionable market insights on post COVID-19 impact on each segment.
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Digital Advertisement Spending Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 17.47% |
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Market growth 2022-2026 |
$ 523.45 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
16.91 |
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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 39% |
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Key consumer countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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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 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 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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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