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The internet advertising market size is estimated to grow at a CAGR of 15.05% between 2022 and 2027. The market size is forecast to increase by USD 424.62 billion. The growth of the market depends on several factors such as rising digital transformation, increasing internet penetration, and widespread adoption of smartphones.
This internet advertising market report extensively covers market segmentation by platform (mobile, desktop and laptop, and others), type (large enterprises and SMEs), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising digital transformation is closely linked to the growth of the global Internet advertising market. With an increasing dependence on digital channels for communication, information, and entertainment, companies are moving away from traditional advertising methods such as print, television, and radio and shifting their budgets to digital advertising. Online advertising offers more targeted and measurable options, making it an attractive option for businesses looking to optimize their marketing spend. Digital transformation allows companies to collect vast amounts of data about consumer behavior, preferences, and interactions.
By leveraging this data, advertisers can create highly personalized and targeted advertising campaigns, increase their relevance to consumers, and improve ad performance. As digital transformation drives the growth of e-commerce, businesses increasingly rely on online advertising to engage online shoppers. E-commerce platforms and online marketplaces use digital advertising to showcase products and drive sales. Therefore, these factors will contribute to the growth of the market during the forecast period.
Advancements in ad tech have played a significant role in shaping the growth of the global Internet advertising market. Programmatic advertising is a revolutionary approach to ad buying that uses automated algorithms and real-time bidding to purchase inventory. It allows advertisers to target specific audiences precisely, reducing ad waste and maximizing return on investment. Programmatic has become the dominant force in digital advertising, accounting for a significant portion of worldwide ad spend.
Moreover, ad technology has made contextual advertising more sophisticated by analyzing website content and user behavior to deliver relevant ads based on the context of the content used. This improves ad relevance and improves user engagement. As a result, advancements in ad technology will lead to more adoption to grasp the benefits, which in turn will boost the growth of the market during the forecast period.
The rise in ad fraud has been a significant concern for the global Internet advertising market. Fraudulent activity such as false impressions, clicks, and conversions causes advertisers to pay for ad placements that don't reach real users or generate real interactions. This wastes advertising budgets and reduces the advertiser's return on investment. Ad fraud not only affects advertisers but also harms legitimate publishers.
Furthermore, implementing effective ad fraud detection and prevention measures requires investments in technology and resources. Ad technology companies and advertisers need to allocate resources to effectively identify and combat fraudulent activity. Thus, the increase in ad fraud activities will impede the growth rate of the global Internet advertising market during the forecast period.
The market research 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 growth strategies.
Global Internet Advertising Market 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.
Accenture Plc: The company offers intelligent advertising services which help to grow the advertising business effectively and profitably at scale.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 mobile segment is estimated to witness significant growth during the forecast period. Mobile online advertising has become an integral part of the digital marketing landscape. Mobile devices are ubiquitous, allowing advertisers to reach large audiences anytime, anywhere. Advertisers can use data collected from mobile devices, such as user behavior and location information, to target specific audiences more precisely.
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The mobile segment was the largest segment and valued at USD 156.03 billion in 2017. Mobile advertising can complement broader digital advertising strategies, creating a consistent brand experience across different platforms. As a result, the shift to mobile Internet advertising has become a significant trend in recent years, reflecting the growing dependence on mobile devices for Internet access and content consumption, this will promote the use of mobile phones and smartphones for advertising and will drive growth of the target market during the forecast period.
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North America is estimated to contribute 53% 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. North America, which includes the US and Canada, has a well-developed digital advertising ecosystem with a large user base and high Internet penetration. Big tech companies, such as Google (including the Google Ads advertising platform), Facebook (including Instagram), and Amazon (including Amazon Advertising), dominate the market.
Furthermore, the strong consumer preference for online shopping is also driving the market. With the increasing availability of Wi-Fi and mobile internet connections such as 5G and the use of apps and web browsers, advertisers have made the opportunity to use in-app advertising as a medium of effective digital advertising. Therefore, these factors will drive the growth of the market during the forecast period.
In 2020, the outbreak of COVID-19 positively influenced the growth of the regional digital advertising market. Post-COVID-19, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of operations in different industries, including retail, BFSI, and telecom. Furthermore, by using artificial intelligence and targeted advertising, companies advertise their products to reach the target audience and provide personalized offers, which will further drive the use of advertising on the internet. Hence, these factors are expected to boost the growth of the North American internet advertising market during the forecast period.
The internet advertising market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Internet Advertising Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.05% |
Market growth 2023-2027 |
USD 424.62 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.91 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 53% |
Key countries |
US, Canada, Japan, China, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Baidu Inc., Boostability Pvt. Ltd., Conversant Solutions LLC, Dentsu Group Inc., International Business Machines Corp., Meta Platforms Inc., Microsoft Corp., PBJ Marketing LLC, PricewaterhouseCoopers LLP, The Walt Disney Co., Thrive Internet Marketing Agency, Twitter Inc., Verizon Communications Inc., Web Net Creatives, WebFX, and Yahoo |
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 the 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Platform
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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