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The cloud advertising market is estimated to grow by USD 380.3 billion at a CAGR of 21.23% between 2023 and 2028. The increasing adoption of cloud services, driven by the need for scalability, flexibility, and cost-effectiveness, is driving market growth by enabling businesses to access and analyze large amounts of data. The growing need for targeted marketing and consumer analytics, fueled by the desire for personalized customer experiences, is also boosting market expansion by driving demand for data-driven marketing solutions. Additionally, the growing internet penetration and digital advertising, driven by the increasing use of smartphones and online platforms, are driving market growth by creating new opportunities for advertisers to reach their target audiences. Overall, these factors are reshaping the marketing and advertising industry and driving the adoption of digital technologies.
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The market is experiencing significant growth due to the increasing number of internet users and the popularity of online advertising campaigns on social media platforms. Technological advancements, including data science, AI, and machine learning, have enhanced advertising networks' capabilities. Businesses are leveraging telecom and e-commerce platforms and other digital platforms to reach their target audience more effectively. However, concerns regarding data security and compliance with cloud regulations remain key challenges. The adoption of cloud services is expected to continue rising, driven by the need for efficient use of data and better return on investment in advertising. Our researchers analyzed the data with 2023 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 growing internet penetration and digital advertising are notably driving the market growth. Technology is constantly evolving, requiring organizations to regularly update their plans and marketing methods to stay ahead. The introduction of the Internet brought about a significant transformation in marketing. Businesses are moving away from traditional advertising methods and towards digital marketing. The rapid advancement of technology calls for a more digitalized approach, which changes some aspects of the traditional marketing methods that have been in place for many years. This shift is evident in online advertising campaigns, which leverage social media platforms, technological improvements, data science, AI, machine learning, and advertising networks to enhance marketing strategies.
Furthermore, traditional marketing focuses on selling products, while modern marketing focuses on identifying consumer needs and enhancing customer satisfaction through new methods such as social media marketing. This approach emphasizes engaging with the audience, understanding their needs, and providing them with maximum satisfaction, leveraging cloud advertising services, infrastructure, capabilities, advertisers, and target audience. The increasing number of smartphone users, along with higher internet penetration and increased consumption of digital media, has led to a significant rise in online users. This presents a new opportunity for dynamic advertising, which is expected to drive the growth of the global market in the forecast period.
The growing impact of social media platforms is an emerging trend in the market. Business owners use marketing to expand their companies profitably and to spread their message in a big way. Combining traditional marketing with social media is the most successful marketing strategy. Business owners have realized that social media marketing (SMM) has a very good impact on a company's success and is a technique that costs very little money to complete but yields a reliable outcome.
It is one of the simplest, most affordable, and most efficient ways to increase visibility and improve a company's reputation. The growing use of social media is compelling various businesses to adopt different advanced advertising technologies, such as cloud advertising, to efficiently manage complexities related to advertising and increase their market reach. Thus, the growing impact of social media platforms is one of the growing trends that is expected to drive the growth of the global market during the forecast period.
Data security concerns are major challenges impeding the market. Various security risks and privacy concerns associated with the implementation of e-commerce hinder the adoption of cloud advertising. End-users need to spend more on effectively deploying cybersecurity processes and systems to make e-commerce safer and more secure. This increases the ownership and implementation costs of cloud advertising.
Cloud advertising handles the confidential data of customers, including contact details, future orders and contracts, shipping details, and details about other partner vendors. Hence, any security breach can be a significant risk in terms of financial losses and loss of customers and affect the brand's reputation. These potential cybersecurity risks make end-users sceptical and hesitant to deploy cloud advertising. Hence, data privacy and security concerns are expected to hinder the growth of the global market during the forecast period.
The 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 Cloud 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.
Demandbase Inc. - The company offers different types of solutions for marketing, sales, and others. The key offerings of the company include cloud advertising.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the retail segment will be significant during the forecast period. With continued emphasis on exploiting internet technology, the retail segment is becoming more customer-centric. Owing to the expanding consumer spending power, retail is likely to be one of the fastest-growing categories.
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The retail segment was valued at USD 44.50 billion in 2018. The retail industry has progressed well beyond the things exhibited in store windows to the availability of goods on mobile devices via the internet. Before purchasing things, shoppers compare pricing, read product reviews, and visit competitor websites. To remain competitive in the market, merchants use a variety of marketing methods to bring people to the physical shop rather than the online e-commerce platform. This vertical's organizations deal with a huge quantity of client data to give tailored experiences to their customers. Cloud advertising enables businesses to develop persuasive content and increase client engagement, which, in turn, helps consumer goods producers enhance brand loyalty and encourage customers to buy their items. Hence, such factors are expected to drive the growth of the segment in the global market during the forecast period.
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North America is estimated to contribute 34% 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.
In comparison to other regions, North America has a significantly high number of social media users, smartphone users, and ad expenditure. It gives marketers a powerful avenue to reach out to potential customers. Consumer goods and retail, as well as media and entertainment, are projected to invest in cloud marketing technologies. The increased need for individualized information and experiences will boost the adoption of cloud advertising in North America even further.
An increase in the number of small and medium-sized businesses across the region, as well as the increased awareness of cloud-based advertising, is boosting the market. To increase their presence in the market, vendors are using a variety of organic and inorganic growth tactics, including new product releases and upgrades, partnerships and collaborations, and mergers and acquisitions. The region's increased expenditures in AI and machine learning technologies are also paving the way for the cloud advertising market to expand. Companies such as Amazon and Apple are using AI to undertake voice-based marketing via devices such as the Alexa and Siri platforms, respectively. All these factors will accelerate the growth of the regional market 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 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is thriving due to technological improvements and the adoption of cloud computing across various industries such as retail & consumer goods, manufacturing, and healthcare. Advertisers are leveraging artificial intelligence (AI) and machine learning (ML) for data-driven campaigns and customer acquisition. Cloud-based advertising solutions offer flexibility and scalability for digital transformation efforts. Big data is utilized for target audience analysis, enhancing customer experience. The market is segmented into public cloud and private cloud, each offering unique advantages for online advertising campaigns. Compliance with cloud regulations and collaboration with advertising networks are crucial for success in this dynamic industry.
The market is characterized by its agility and ability to adapt to industry dynamics and changing consumer behaviors. It leverages cloud technology to offer BPaaS (Business Process as a Service) for digital platforms and online presence optimization. Advertisers benefit from data science for efficient use of data in email marketing and programmatic advertising. IaaS (Infrastructure as a Service) and PaaS (Platform as a Service) solutions provide the necessary infrastructure and capabilities for large enterprises and businesses of varying organization size. SaaS (Software as a Service) models ensure return on investment and cater to stakeholder information needs. The market serves diverse sectors like IT & telecommunications, media & entertainment, retail and eCommerce, automotive, and travel and hospitality, adhering to regulatory bodies guidelines.
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Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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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 21.23% |
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Market growth 2024-2028 |
USD 380.3 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
18.17 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 34% |
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Key countries |
US, China, UK, Germany, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Acquia Inc., Adobe Inc., Alphabet Inc., CM Group, Demandbase Inc., Experian Plc, Fair Isaac Corp., HubSpot Inc., Imagine Communications Corp., InMobi Pte. Ltd., International Business Machines Corp., Marin Software Inc., MediaMath Inc., Oracle Corp., Pegasystems Inc., Salesforce Inc., SAP SE, Sitecore Holding II AS, and The Nielsen Co. US LLC |
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Market dynamics |
Parent market analysis, Market forecasting , market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, 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 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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