Global Internet Advertising Market is Expected to Grow at a CAGR of 24.7% During the Forecast Year Till 2027
The global internet advertising market held a market size of USD 345.33 Million in 2020 and is expected to reach USD 1,503.20 Million by 2027. The global internet advertising market is anticipated to grow at a CAGR of 24.7% over the forecast period.
Internet advertising uses internet as a platform to send promotional & marketing messages to the customers. Continuous growth of internet users globally is one of the most important factors fuelling the growth of online internet advertising market. Businesses use internet advertising such as banners, pay-per-call ads, pay-per-click ads, and pop-ups through e-newsletters, search engines, suitable websites, and online magazines and newspapers to reach the right customer, at the right time.
Continuous increase in penetration of internet across the globe has presented a great opportunity for internet advertising. Growing trend of social media bloggers have also attracted huge attention of young population in the recent years, resulting in growing effectiveness of internet advertising.
Whereas, lack of technological awareness regarding internet usage in developing countries and underdeveloped countries are restraining the market growth.
Significant number of investments are being made by the market players to provide additional features to the internet advertising platforms in order to serve their client’s requirements in a better way.
Growth Influencers
Continuous growth in the number of internet users across the globe is driving the demand for internet advertising
One of the most important factors fuelling the growth of internet advertising market, is development in the number of internet users, coupled with the increased adoption of smartphones. Introduction of 5G technology is expected to promote further growth in the number of internet users in the forthcoming years.
Covid-19 pandemic to transform the advertising platforms in the forthcoming years
Growing number of coronavirus cases across the globe has resulted in complete lockdown in various countries across the globe. This has resulted transforming the physical market into digital space. The consumer focus has shifted towards online shopping. This has resulted in the tremendous increase in the usage of internet advertising by the businesses.
Lack of awareness regarding online shopping among older generation is expected to restrain the market growth
Lack of awareness about online shopping, and usage of smartphones & laptops among old aged population, is one the most important factors retraining the market growth. The older generation’s shopping behaviour is more inclined towards traditional media of advertisements, resulting in creating a hindrance in the market growth.
Segments Overview
The global Internet advertising market is segmented into platform, advertising model, Ad format, Ad type, enterprise type, and industrial vertical.
By Platform
- Mobile
- Desktop and Laptop
On the basis of platform, the mobile segment is expected to grow at a highest rate i.e., CAGR of 25.6% during the forecast period.
By Advertising Model
- CPM
- Performance
- Hybrid
The performance segment held the largest share of around 65% in 2020. The segment is expected to continue this dominance during the forecast period. Whereas, the hybrid segment is expected to grow at a highest rate of 24.6%, during the forecast period.
By Ad Format
- Search
- Banner
- Video
- Others (Classifieds, Lead generation, Audio)
Based on ad format, search segment captured the largest share of more than 45% of internet advertising market. Whereas, video segment is [projected to grow at a highest CAGR of 26.3%, during the forecast period.
By Ad Type
- Display Advertising
- Mobile Advertising
- Search Engine Advertising
- Social Media
- Advertising
- Hybrid
- Others
On the basis of ad type, the search engine advertising segment captured the largest market share in 2020. Whereas, mobile advertising is estimated to grow at a highest rate during the forecast period.
By Enterprise Size
- Large Enterprises
- Small Enterprises
- Medium Sized Enterprises
On the basis of enterprise size, the large enterprises segment captured the largest market share in 2020, and is estimated to continue this dominance during the forecast period.
By Industry Vertical
- Automotive
- Healthcare
- Media & Entertainment
- BFSI
- Education
- Retail & Consumer Goods
- Transport & Tourism
- IT & Telecom
- Others
Based on industry vertical, media & entertainment segment dominated the internet advertising market in 2020, and is expected to continue this dominance during the forecast period.
Regional Overview
On the regional basis, the global internet advertising market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America.
Asia-pacific is dominating the global Internet advertising market, in terms of growth rate, during the forecast period. Growing number of internet users in Asia-pacific countries is one of the most important factors, resulting in this dominance. Whereas, North America region is expected to capture the largest market share of around 43% in 2020, and is expected to continue this dominance during the forecast period.
Competitive Landscape
Prominent players functioning in the market include: Adobe Systems Inc., Alibaba Group Holdings Limited, Amazon Web Services, Inc., Baidu, Inc., Facebook, Inc., Google LLC, Hulu LLC, International Business Machines Corporation, Microsoft Corporation, Twitter Inc., Verizon Communication Inc.The top 5 market players captured a cumulative share of nearly 71% in the year 2020.
The global Internet advertising market report offers insights on the below pointers:
- Market Penetration: The research report provides comprehensive data on the market offered by the prominent players
- Market Development: The report offers detailed analysis about emerging markets and examines penetration across mature segments of the markets
- Market Diversification: The research report offers comprehensive information about untapped geographies, recent developments, and investments
- Competitive Landscape Assessment: Mergers & acquisitions, certifications, product launches, collaborations in the market have been provided in this research report. In addition, the report also includes a SWOT analysis of the leading market players.
The global Internet advertising education market report answers questions such as:
- What is the market size and forecast of the global Internet advertising market?
- What are the inhibiting factors and impact of COVID-19 on the global Internet advertising market during the assessment period?
- Which are the products/segments/applications to invest in over the assessment period in the global Internet advertising market?
- What are the technology trends in the global Internet advertising market?
- What strategies are considered favourable for entering the global Internet advertising market?
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Adobe Systems Inc.
- Alibaba Group Holdings Limited
- Amazon Web Services, Inc.
- Baidu, Inc.
- Facebook, Inc.
- Google LLC
- Hulu LLC
- International Business Machines Corporation
- Microsoft Corporation
- Twitter Inc.
- Verizon Communication Inc.
