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The digital advertisement spending market size is forecast to increase by USD 570.7 billion at a CAGR of 18.51% between 2023 and 2028. The digital advertising spending market is experiencing significant growth, driven by several key trends and factors. One major factor is the decline in offline ad spending as businesses increasingly shift their budgets toward digital channels. Another trend is the evolution of programmatic advertisement buying, which allows for more targeted and efficient ad placements. However, the market also faces challenges, particularly in the area of OTT (over-the-top) advertising. With the proliferation of streaming services and cord-cutting, advertisers are seeking effective strategies to reach audiences in this new media landscape. Overall, the digital advertising market is poised for continued growth, but advertisers must navigate these trends and challenges to maximize their impact and ROI.
The digital advertising spending market is a significant segment of the digital media industry, driven by the increasing usage of social media, video, search engines, mobile devices, laptops, and desktops. The market encompasses various sectors such as health care, media and entertainment, ecommerce websites, and technology infrastructure. In the digital world, advertisers invest heavily in online advertising, digital media, online portals, and digital marketplaces to reach their target audience. Video advertising, including photo and video ads, has gained immense popularity due to the rise of streaming platforms and smartphone devices. Social media platforms have also emerged as a major advertising channel, enabling businesses to engage with their customers in real-time.
The online population's growth and the shift from traditional television advertisement to digital video marketing are key factors driving the market's expansion. The digital advertising market is also influenced by technology advancements such as multifactor authentication, crypto currency, and digital creative services. These technologies provide enhanced security, convenience, and creativity, making digital advertising more effective and engaging for consumers. Overall, the digital advertising market is expected to continue growing, offering ample opportunities for businesses to reach their audience and thrive in the digital marketplace.
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.
The display ad segment is estimated to witness significant growth during the forecast period. In the digital world, various forms of advertisement such as display, email, social media, video, and search engine advertising, are increasingly gaining popularity among businesses looking to reach their target audience online. According to recent studies, The market is projected to expand significantly over the next few years, driven by the widespread use of internet-connected devices like laptops, desktops, smartphones, and tablets. This growth can be attributed to the ability of digital media to provide targeted advertising through IP targeting, reaching both business-to-business (B2B) and business-to-consumer (B2C) customers directly. Digital ads come in various formats, including visual ads, photo video ads, and multifactor authentication ads, and can be found on online portals, ecommerce websites, streaming platforms, and technology and infrastructure websites.
The media and entertainment, health care, transport and tourism, IT and telecom industries are major contributors to the digital advertising market. Traditional television advertisement continues to coexist with digital video marketing, offering advertisers the flexibility to reach a mass audience through both channels. Moreover, the coronavirus pandemic has accelerated the shift toward digital advertising as businesses look for new ways to engage with their customers and adapt to changing consumer behavior. Digital creative services and strategic campaign development have become essential components of successful digital ad spending, ensuring that ads are tailored to the audience and delivered through the most effective channels.
Overall, the digital advertising market offers advertisers a cost-effective and measurable way to reach their target audience and drive conversions in the ever-evolving digital landscape.
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The display ad segment was valued at USD 144.60 billion in 2018 and showed a gradual increase during the forecast period.
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.
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The digital advertising spending market encompasses various platforms such as social media, video, search engines, mobile, laptop, and desktop devices. In the current digital landscape, health care, media and entertainment, transport and tourism, IT and telecom sectors are significant investors in digital advertising. Visual ads, including photo and video content, dominate online advertising, reaching an expansive online population primarily through internet-connected smartphone devices. Technology and infrastructure advancements have facilitated streaming services, ecommerce websites, and digital marketplaces, further fueling digital ad spending. Strategic campaign development in digital media and online portals has become essential for businesses seeking to engage their audience effectively in the digital world.
The market levels continue to rise as technology evolves, with digital video marketing emerging as a powerful tool to complement traditional television advertisement. The ongoing coronavirus pandemic has accelerated the shift towards digital advertising, with email marketing and multifactor authentication gaining prominence in the digital creative services sector. Crypto currency and its integration into digital advertising are also emerging trends in this dynamic market.
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 decline in offline ad spending is the key driver of the market. The trend in advertising spending has seen a significant shift from traditional offline media, such as magazines and newspapers, to digital channels. This shift is attributed to the affordability and reach of digital advertising. While print media advertising, which encompasses ads in newspapers and magazines, has experienced a decline in recent years, digital advertising continues to gain traction. The sales of print media, including newspapers and magazines, have reduced due to the emergence of digital alternatives like e-papers and e-magazines. In India, for instance, the average issue readership of leading newspapers has decreased. As a result, businesses are increasingly turning to digital platforms for their advertising needs.
Digital advertising offers cost-effective solutions, particularly for small-sized businesses, and provides targeted reach through search engine results and social media platforms. Consequently, the global market for digital advertisement spending is projected to grow during the forecast period.
The evolution of programmatic advertisement buying is the upcoming trend in the market. Programmatic advertisement buying has revolutionized the digital advertising market by streamlining the process of purchasing digital ads. Unlike traditional print media advertising in newspapers and magazines, programmatic advertising offers targeted reach through Real-Time Bidding (RTB) and Artificial Intelligence (AI). This technology enables online display, mobile, video, and social media campaigns, providing advertisers with a more efficient and cost-effective solution. Previously, digital advertisements were sold manually by salespeople, leading to potential unreliability and high costs. RTB is the dominant type of programmatic advertising, where online advertising display inventory is bought and sold through a bidding process. Advertisers can bid for inventory that aligns with their target audience demographics, ensuring maximum reach and impact.
The leading programmatic advertising method, RTB, offers an auction environment provided by advertising exchanges/marketplaces, enabling real-time bidding and optimal ad placement.
Challenges associated with OTT advertising is a key challenge affecting the market growth. Digital advertisement spending in the print media sector, including print newspapers and magazines, continues to hold a significant market share. However, the shift towards digital platforms, particularly Over-The-Top (OTT) media, is gaining momentum. OTT advertising, while offering unique advantages such as real-time audience targeting and personalization, presents challenges for digital advertisers. The absence of standardized identifiers for device identification and ad delivery hinders effective targeting and frequency management. As a result, advertisers struggle to deliver relevant ads to specific users, limiting the potential reach and impact of their campaigns. Furthermore, the lack of transparency and vulnerability to fraudulent activities in OTT advertising can negatively impact an advertiser's budget and brand reputation.
Despite these challenges, the OTT advertising market is expected to grow significantly in the coming years, necessitating continuous innovation and improvement in addressing these issues.
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 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 market is witnessing significant growth as more businesses shift their focus towards reaching their audience in the online world. The primary platforms for digital advertisement include social media, search engines, and video content. With the increasing usage of smartphone devices and laptops/desktops, mobile and online advertising have become essential components of a business's marketing strategy. Sectors like media and entertainment, health care, IT and telecom, and transport and tourism are significant contributors to the digital advertising market. Technology infrastructure and digital marketplaces provide the foundation for online advertising, enabling businesses to reach their target audience through various digital channels, such as online portals, e-commerce websites, and streaming services.
Visual ads, including photo and video ads, are increasingly popular, with video content leading the way. Digital creative services and strategic campaign development play a crucial role in creating engaging and effective digital ads. The coronavirus pandemic has accelerated the shift towards digital advertising, with email marketing and multifactor authentication becoming essential for businesses to maintain customer engagement and ensure security. The digital world offers numerous opportunities for businesses to expand their reach and engage with their audience effectively. Digital ad spending continues to grow, with the online population and internet-connected devices providing a vast and diverse audience for advertisers.
Traditional television advertisement still holds significance but is gradually being overshadowed by the convenience and cost-effectiveness of digital advertising. The future of advertising lies in the digital realm, with ongoing advancements in technology and infrastructure paving the way for new opportunities and innovations.
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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 growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the 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. |
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 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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