The global online advertising market size was valued at around USD 393 billion in 2021 and is projected to reach around USD 810 billion by 2030, expanding at a CAGR of around 16 % during the forecast period, 2022 – 2030. The growth of the market is attributed to the advancement in communication technologies.
Advertising is a mean of communication to introduce products and services to audience using mass media. Advertising plays an important role in any market by providing information about a product and persuading audience to buy it. Online advertising is a form of marketing, which uses internet and digital platforms to deliver promotional messages to identified and intended audience. Online advertising uses innovative graphical content tactics such as videos, pop ups, and redirections on the web to catch attention of consumers. With growing penetration of internet, emergence of high-speed internet, and increasing use of smart devices, online advertising emerged as a strong marketing strategy. Technological advancements and rising digital spending by enterprises, companies, and organizations are expected to aid in expansion of the global online advertising market in the coming years.
Market Trends, Drivers, Restraints, and Opportunities
- Emergence of high-speed internet and extensive adoption of smartphones are expected to drive the global online advertising market during the forecast period.
- Increasing usage of social media and rising popularity of streaming platforms are estimated to boost the market in the coming years.
- Rising expenditure in online advertising by various industries to increase brand awareness is projected to fuel the market.
- Growing adoption of advertisement-blockers to avoid online advertising on certain digital platforms are expected to hinder the growth of the market.
- Emerging trend of automation technologies in the online advertising market is projected offer growth opportunities to the key market players.
Scope of the Report
The report on the global online advertising market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Online Advertising Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2021
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Historic Data
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2019–2020
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Forecast Period
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2022–2030
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Segmentation
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Formats (Search Engine, Social Media, Video, Smartphones, Display, and Others), Platforms (Smartphones, Laptops, Tablets, Desktops, and Others), and End-users (Healthcare, Automotive, Retail & E-commerce, Media & Entertainment, Transport & Tourism, Education, IT and Telecommunication, Industrial, BFSI, Consumer Packaged Goods (CPG), and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Google LLC; Meta Platforms, Inc.; Amazon.com, Inc.; Twitter, Inc.; Microsoft Corporation; Alibaba Group Holding Limited; International Business Machines Corporation; Hulu, LLC; Baidu, Inc.; Verizon Communication, Inc.; Yahoo! Inc.; AOL, Inc.; Sirius XM Holdings; Apple, Inc.; eBay, Inc.; and Others
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Market Segment Insights
Video segment drives the market
On the basis of formats, the market is divided into search engine, social media, video, smartphones, display, and others. The video segment is expected to fuel the market during the forecast period, due to growing trend of video advertising for online platforms. Video advertisements are highly effective in capturing the attention of viewers than other formats; thus, fueling the global online advertising market. The social media segment is anticipated to expand rapidly in the coming years, owing to increasing number of social media users of all ages across the globe.
Smartphone segment holds a large share of market
In terms of platforms, the market is segregated into smartphones, laptops, tablets, desktops, and others. The smartphone segment is estimated to drive the market during the forecast period, due to growing penetration of internet and increasing usage of smartphones across the globe. Furthermore, key market players are creating innovative advertising content that supports smartphone devices, which spurs the global online advertising market.
Retail segment is expected to expand rapidly
Based on end-users, the market is divided into healthcare, automotive, retail, media & entertainment, transport & tourism, education, IT and telecommunication, industrial, BFSI, Consumer Packaged Goods (CPG), and others. The retail segment is projected to boost the market during the forecast period, as retailers use online advertising strategies to expand their customer base and grow website traffic. The BFSI segment is anticipated to expand during the forecast period, owing to technological advancement and increasing digital spending in BFSI.
North America dominates the market
On the basis of regions, the market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America holds a large share of the global market, due to increasing investments in online advertisements in the region. Growing online activities of consumers and increasing usage of smartphones in North America are projected to drive the market during the forecast period. The market is Asia Pacific is anticipated to expand in the coming years, owing to extensive urbanization, rapid industrialization, and rising adoption of technology in the region.
Segments
The global online advertising market has been segmented on the basis of
Formats
- Search Engine
- Social Media
- Video
- Smartphones
- Display
- Others
Platforms
- Smartphones
- Laptops
- Tablets
- Desktops
- Others
End-users
- Healthcare
- Automotive
- Retail & E-commerce
- Media & Entertainment
- Transport & Tourism
- Education
- IT and Telecommunication
- Industrial
- BFSI
- Consumer Packaged Goods (CPG)
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Google LLC
- Meta Platforms, Inc.
- Amazon.com, Inc.
- Twitter, Inc.
- Microsoft Corporation
- Alibaba Group Holding Limited
- International Business Machines Corporation
- Hulu, LLC
- Baidu, Inc.
- Verizon Communication, Inc.
- Yahoo! Inc.
- AOL, Inc.
- Sirius XM Holdings
- Apple, Inc.
- eBay, Inc.
- Others
Competitive Landscape
The global online advertising market is highly competitive with the presence of key players such as Google LLC; Meta Platforms, Inc.; Amazon.com, Inc.; Twitter, Inc.; Microsoft Corporation; Alibaba Group Holding Limited; International Business Machines Corporation; Hulu, LLC; Baidu, Inc.; Verizon Communication, Inc.; Yahoo! Inc.; AOL, Inc.; Sirius XM Holdings; Apple, Inc.; eBay, Inc.; and others, who use business strategies such as mergers, acquisitions, partnerships, collaborations, and product launches to dominate the market. For example, in October 2020, Microsoft Corporation launched multi-factor authentication in its Microsoft Advertising online. In April 2022, Google LLC introduced user controls, which helps users to control the number of advertisements on their devices.
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