According to a recent report published by Allied Market Research, titled, “Internet Advertising Market By Platform Type, Ad Format, Pricing/Revenue Model, Enterprise Size, Industry Vertical, And Region: Opportunity Analysis and Industry Forecast, 2020-2027,”
The global internet advertising market size was valued at $319 billion in 2019, and is projected to reach $1,089 billion by 2027, registering a CAGR of 17.2% from 2020 to 2027. The growth of the global internet advertising market is driven by factors such as extensive adoption of smart phones, emergence of high-speed internet, proliferation of social media, growth in advertising spends on digital media across various industries, and rise in popularity of streaming platforms. In addition, the increase in interest of business owners for online advertising due to COVID-19 to increase brand awareness and to gain competitive advantage fuels the market growth. However, rise in adoption of ad-blockers to avoid online advertising may hinder the market growth to some extent. On the contrary, emergence of advertising automation is anticipated to provide lucrative opportunities for the market growth. In addition, rise in adoption of identity-based pay-per-click marketing by businesses to achieve greater success in their marketing is expected to be opportunistic for the internet advertising market growth during the forecast period.
In 2019, the global internet advertising market share was dominated by the search engine advertising or search engine marketing segment and is expected to maintain its dominance in the coming years due to the rise in number of consumers who are shopping and researching for products online. In addition, the rise in need of multinational companies to become more reachable, searchable, and visible across the internet propels the growth of the search engine advertising market. However, the social media advertising segment is expected to witness the highest growth as the due to the accelerating demand of social media platforms.
By platform type, the global online advertising market share was dominated by the mobile segment in 2019, and is expected to maintain its dominance in the coming years due to various factors such as increase in mobile device and mobile internet users, growth in popularity of social media, and time spent on mobile devices. In addition, the key players-operating in the mobile-based advertising industry create and develop mobile advertising content that can easily support mobile devices. Moreover, the rise in trend of e-commerce and m-commerce further propels the growth of internet advertising on mobile platform as more and more people are using their mobile phones to browse the internet and enjoy internet-based shopping services.
By industry vertical, the global internet advertising market share was dominated by the retail & consumer goods segment in 2019, and is expected to maintain its dominance in the coming years due to the rise in need for smaller businesses in the retail and consumer goods industry to compete with larger organizations in an increasingly competitive marketplace filled with innovation. Various retailers are advancing their internet advertising strategies to enable shoppers know about their business and drive traffic to their e-commerce site.
The current estimation of 2027 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has low impact on the growth of the internet advertising market. It is predicted that various brands may reduce their advertising spend given the economic impact of COVID-19; however, the uptick in social media traffic has presented unique opportunities to engage with online audience while keeping the brand awareness high. In addition, the coronavirus has spread uncontrollably and governments across the globe are still trying to contain it by closing public spaces, schools, and borders; this has transformed all businesses and marketers to update their online marketing strategies. Furthermore, businesses are expected to invest more in online advertising due to the pandemic, which fuels the market growth. For instance, the Interactive Advertising Bureau (IAB) estimated that there will be 24% decline in traditional TV advertising spend in 2020 vs. 2019; however, connected TV advertising spend is estimated to grow at 19% year over year.
Key findings of the study
- By ad format, in 2019, the search engine advertising/search engine marketing segment dominated the internet advertising market. However, the social media advertising segment is expected to exhibit significant growth during the forecast period.
- Depending on platform, the mobile segment generated the highest revenue in 2019 and is expected to witness highest growth rate in the near future.
- On the basis of enterprise size, the large enterprises segment accounted for the highest revenue in 2019; however, the SME’s segment is expected to witness highest growth rate over the forecast period.
- On the basis of industry vertical, the retail & e-commerce segment accounted for the highest revenue in 2019; however, the media & entertainment segment is expected to witness highest growth rate over the forecast period.
- Region-wise, the internet advertising market size was dominated by North America in 2019. However, Asia-Pacific is expected to witness significant growth in the coming years.
Some of the key internet advertising industry players profiled in the report include Alibaba Group Holding Limited, Google LLC, Baidu, Inc., Amazon.com, Inc., International Business Machines Corporation, Facebook, Inc., Microsoft Corporation, Twitter Inc., Verizon Communications Inc., and Hulu LLC. This study includes market trends, internet advertising market analysis, and future estimations to determine the imminent investment pockets.