Online Ad Spending Market by Platform and Geography - Forecast and Analysis 2022-2026

The online ad spending 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%.

This online 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 online ad spending market segmentation by platform (mobile devices and desktops) and geography (North America, APAC, Europe, South America, and Middle East and Africa). The online ad spending market report also offers information on several market vendors, including Alphabet Inc., Alibaba Group Holding Ltd., Alliance Data Systems Corp., Amazon.com Inc., Baidu Inc., Dentsu Group Inc., Digital Turbine Inc., Eniro Group AB, GroupM, Hakuhodo DY Media Partners Inc. Co. Ltd., IAC InterActiveCorp, Meta Platforms Inc., Microsoft Corp., Reworld Media, Sohu.com Ltd., SXM Media, Tencent Holdings Ltd., The Interpublic Group of Companies Inc., Twitter Inc., and Verizon Communications Inc. among others.

What will the Online Ad Spending Market Size be During the Forecast Period?

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Online Ad Spending Market: Key Drivers, Trends, and Challenges

The decline in offline ad spending is notably driving the online ad spending market growth, although factors such as click fraud activities 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 online 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 Online Ad Spending Market Driver

The decline in offline ad spending is one of the key drivers supporting the online ad spending market growth. Due to the rising competition from digital avenues such as audio streaming services, spending on radio ads has declined in recent years. However, in 2020, the COVID-19 pandemic led to a further decline in radio ad spending. Due to the lockdowns, fewer people commuted to work, which resulted in reduced daily listenership, which constrained the global radio advertising market. For instance, in the US, the average unit ad rates per 30-second spot on radio networks declined by 18.2% in 2020 compared to 2019. Similarly, 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 as compared to 2000 in March 2020. Thus, the decline in offline ad spending will positively impact the growth of the global online ad spending market during the forecast period.

Key Online Ad Spending Market Trend

The growth of online video and connected TV (CTV) advertising is another factor supporting the online ad spending market growth. The spending on online video advertising is expected to increase from $62 billion in 2021 to $91 billion in 2024. Since the outbreak of the COVID-19 pandemic in 2020, consumers have increased the amount of time spent on streaming videos. In view of this, advertisers are increasingly viewing OTT content providers as a profitable advertising platform. In addition, significant investments made by OTT content platforms, such as Netflix, Hotstar, and Amazon Prime, to ensure diversity in content offerings have led to a rise in subscription-based services globally. For instance, Amazon Prime Video's subscriber base stood at 18 million in June 2021 and is projected to reach 21.8 million by 2022. Thus, the overall rise in consumption of OTT content has been favorable for advertisers to increase their reach. Such trends will positively impact the growth of the global online ad spending market during the forecast period.

Key Online Ad Spending Market Challenge

Click fraud activities is one of the factors hindering the online ad spending market growth. With the increasing number of smartphone users, mobile advertising has become one of the fastest-growing segments of online advertising. Many ad publishers are engaged in ad stacking, click injecting, and running background ads on mobile apps. However, this has also increased the amount of in-app click frauds. For instance, in 2020, mobile apps had a share of 19% of all fraudulent clicks. Though not considered a click fraud activity, users can sometimes engage in behavior that could lead to an outcome similar to click fraud. Such instances can occur when a user regularly clicks on a PPC search ad to visit a particular website instead of navigating it directly from a search engine. Thus, click fraud activities can pose a challenge to online advertisers and lead to a decline in their revenues. These challenges are expected to negatively impact the growth of the global online ad spending market during the forecast period.

This online 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.

Parent Market Analysis

Technavio categorizes the global online ad 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 online ad spending market during the forecast period.

Who are the Major Online Ad Spending Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• Alphabet Inc.
• Alibaba Group Holding Ltd.
• Alliance Data Systems Corp.
• Amazon.com Inc.
• Baidu Inc.
• Dentsu Group Inc.
• Digital Turbine Inc.
• Eniro Group AB
• GroupM
• Hakuhodo DY Media Partners Inc. Co. Ltd.
• IAC InterActiveCorp
• Meta Platforms Inc.
• Microsoft Corp.
• Reworld Media
• Sohu.com Ltd.
• SXM Media
• Tencent Holdings Ltd.
• The Interpublic Group of Companies Inc.
• Twitter Inc.
• Verizon Communications Inc.

 

This statistical study of the online ad spending market encompasses successful business strategies deployed by the key vendors. The online ad spending market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• Alphabet Inc. is a public company headquartered in the US. It is a global company generating $257,637 million in revenues and has around 156,500 employees. Its revenue from the global online AD spending market contributes to its overall revenues along with its other offerings, but it is not a key revenue stream for the company. 
• The company offers services such as Google Ads. 

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 online 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.

Online Ad Spending Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the online 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.

Which are the Key Regions for Online Ad Spending Market?

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41% of the market's growth will originate from North America during the forecast period. The US is the key market for online ad spending market in North America. Market growth in this region will be faster than the growth of the market in MEA.

The increased penetration of smartphones and strong broadband infrastructure will facilitate the online 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

In 2020, the COVID-19 pandemic positively impacted the regional online ad spending market. However, factors such as a surge in the adoption of smartphones, tablets, and desktops and the subsequent increase in online ad spending will drive the growth of the regional market during the forecast period.

What are the Revenue-generating Platform Segments in the Online Ad Spending Market?

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The online ad spending market share growth by the mobile devices segment will be significant during the forecast period. Online advertising on mobile devices offers a better return on investment (ROI) than desktop computers. This segment is expected to experience high growth during the forecast period owing to the rising number of smartphone users globally. Mobile Internet advertising can host a variety of advertisements such as mobile videos and in-app advertisements via different platforms, which increase their outreach. With the increasing number of smartphone and tablet users across the world, mobile advertising has become one of the fastest-growing segments of the global online ad spending market. Such factors are driving the market growth.

This report provides an accurate prediction of the contribution of all the segments to the growth of the online ad spending market size and actionable market insights on post COVID-19 impact on each segment.

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Online 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 10.98%
Market growth 2022-2026	$ 241.99 billion
Market structure	Fragmented
YoY growth (%)	10.4
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 41%
Key consumer countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Alphabet Inc., Alibaba Group Holding Ltd., Alliance Data Systems Corp., Amazon.com Inc., Baidu Inc., Dentsu Group Inc., Digital Turbine Inc., Eniro Group AB, GroupM, Hakuhodo DY Media Partners Inc. Co. Ltd., IAC InterActiveCorp, Meta Platforms Inc., Microsoft Corp., Reworld Media, Sohu.com Ltd., SXM Media, Tencent Holdings Ltd., The Interpublic Group of Companies Inc., Twitter Inc., and Verizon Communications 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 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.

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What are the Key Data Covered in this Online Ad Spending Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive online ad spending market growth during the next five years
• Precise estimation of the online ad spending market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the online ad spending industry across North America, APAC, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of online ad spending market vendors

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