The global smart advertising market size was valued at USD 655.4 in 2020. The market is projected to expand at a CAGR of approximately 19.8% during the forecast period, 2021 – 2028. The growth of the market is attributed to the rapid expansion of wireless internet access infrastructure and the availability of video content management tools globally.
Smart advertising is distinct from conventional advertising, which grabs the attention of people immediately. Organizations are focusing on smart ads for a variety of reasons, including eye-catching and user-friendly advertising choices, entertainment, cost-effectiveness, and others. The main goal of advertising is to raise awareness about the company's product, educate potential buyers, gain a competitive advantage, and change the buyer's consumption habits. Smart advertising incorporates three technologies: immersive media, system motion, and artificial intelligence (AI), which work together to help start businesses, increase customer engagement, and help advertisers push customers to a company's special marketing page or an online shop. Smart advertising responds to its surroundings by receiving and transmitting data over an information network and plays an important role in inciting customer interest and the company's conversion rate.
Smart advertising is quickly gaining attraction and becoming one of the most common types of advertising for businesses in a variety of industries, including automotive, gaming, consumer goods, entertainment, and electronics. Smart advertising, as opposed to other traditional types of advertising, allows advertisers to efficiently target consumers based on multiple attributes such as preferences, age, and location, among others, resulting in increased user interaction. Digital Out-of-Home (DOOH) companies now recognize potential customers and offer personalized advertising content, due to technological advances in areas such as artificial intelligence (AI), sensor fusion, machine learning (ML), and big data analytics. This technology empowered DOOH companies to analyze vast amounts of customer data to determine how well their advertisements are doing.
Market Trends, Drivers, Restraints, and Opportunities:
- Advertisers are increasingly focusing on using a hyper-targeted advertisement model to offer customized content to specific customer segments, which is expected to drive the market.
- Rapidly expanding wireless internet networking infrastructure and global availability of video content management systems, are both contributing to the growth of the corporate sector in the market.
- Government regulations governing data privacy and security, such as the European Union's General Data Protection Regulation (GDPR), is expected to hamper the market growth.
Scope of the Report
The report on the global smart 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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Smart Advertising Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Components (Hardware, Software, and Services), Products (Interactive Kiosk, Digital Billboard, and Digital Poster), End-users (Corporate, Government, Education, Food & Beverage, 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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Lamar Advertising Company, OUTFRONT Media Inc., CIVIQ Smartscapes, Clear Channel Outdoor Holdings, Inc., Exterion Media (UK) Limited, JCDecaux Group, Include Ltd., Intersection, IKE Smart City, Changing Environments Inc., and Captivate
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Market Segment Insights:
Hardware Segment is holding a dominant share
Based on components, the global smart advertising market is divided into hardware, software, and services. The hardware segment accounts for a key share of the market and is anticipated to expand at a rapid pace during the forecast period. Increased installation of outdoor digital billboards, indoor digital posters, and virtual kiosk networks by (Digital Out Of Home) DOOH media companies around the world led the segment to grow rapidly over the forecast period. DOOH media companies are concentrating on combining high-definition cameras and advanced sensors such as vibration, smoke, and proximity sensors with traditional digital displays to increase the delivery of personalized advertisement content. These hardware systems, which are driven by Machine Learning (ML) and Artificial Intelligence (AI), play a key role in identifying and categorizing customers based on a variety of factors such as gender, age, mood, and place. These factors are crucial in propelling the hardware market.
Digital Poster segment is expected to represent a key share
On the basis of products, the global smart advertising market is divided into interactive kiosk, digital poster, digital billboard, and others. The digital billboard segment accounts for a key share of the market and is anticipated to expand at a rapid pace during the forecast period. Increased emphasis on replacing traditional billboards with digitalized billboards that have wireless connectivity and a range of sensors increased the market share of the digital billboard segment in 2020. These smart billboards are a key component of several smart city projects and generate a significant amount of revenue for local governments. Over the forecast period, the digital poster segment is expected to rise at a rapid pace. Digital posters are increasingly used in public and private spaces such as business centers, community centers, and shopping malls. Furthermore, over the next six years, the market is expected to expand, due to the growing adoption of digital posters in transit advertisements such as city metro and buses, as well as for street-side advertising.
Corporate segment is holding a dominant share
Based on end-users, the global smart advertising market is divided into corporate, government, education, food & beverage, and others. In 2020, the corporate segment dominated the industry and is expected to expand at a rapid pace over the forecast period. Increasing number of creative and imaginative advertisement campaigns undertaken by multi-national corporations and large-scale businesses with a substantial global or regional footprint leads to the segment growth. Smart advertising is expected to play a key role in allowing businesses to expand their scope and undertake consumer engagement at major public venues, as well as improve customer experiences. DOOH network operators are focused on integrating advanced electronic and information and communication technology into traditional digital displays, such as AI, machine learning, sensors, and cameras. These innovations enabled media agencies and marketers to develop innovative and engaging advertising strategies that increase consumer awareness and conversions.
Asia Pacific is a fast-growing market
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. In 2020, the global smart advertising market was dominated by the market in North America. Emergence of several leading DOOH media firms, high advertisement spending by businesses, and the availability of high-speed wireless internet connectivity in the area are the main growth drivers in the region. Over the forecast period, the smart advertising market in Asia Pacific is expected to be a rapidly-growing regional market, due to increased emphasis by multinational corporations on innovative advertisements to develop a strong presence in high-potential and developing economies such as China and India. Continuous investment in high-speed internet infrastructure, growing number of smart city initiatives, and the involvement of major electronic component manufacturers in Asia Pacific are expected to drive the installation of digital displays and many other smart advertising items.
Segments
Segments Covered in the Report
The global smart advertising market has been segmented on the basis of
Components
- Hardware
- Software
- Services
Products
- Interactive Kiosk
- Digital Billboard
- Digital Poster
- Others
End-users
- Corporate
- Government
- Education
- Food & Beverage
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Lamar Advertising Company
- OUTFRONT Media Inc.
- CIVIQ Smartscapes
- Clear Channel Outdoor Holdings, Inc.
- Exterion Media (UK) Limited
- JCDecaux Group
- Include Ltd.
- Intersection
- IKE Smart City
- Changing Environments Inc.
- Captivate
Competitive Landscape
Key players operating in the market are Lamar Advertising Company, CIVIQ Smartscapes, OUTFRONT Media Inc., Include Ltd, Exterion Media (UK) Limited, Clear Channel Outdoor Holdings, Inc., JCDecaux Group, Intersection, IKE Smart City., Changing Environments Inc., and Captivate. These industry players are working on designing new ways to help corporations around the world embrace DOOH and smart ads. Other businesses are focused on expanding their digital display networks to provide smart advertising services.
JCDecaux, for example, purchased APN Outdoor, an OOH media group in Australia. As a result of the purchase, the former was able to expand existing operations in the high-potential market in Australia. Clear Channel Outdoor Holdings Inc. is a specialist outdoor advertising business that focuses primarily on digital ads on streets and airports. The company has a broad global business network that spans 30 countries and includes approximately 14,000 digital displays. Exterion Media (UK) Limited has a large presence in countries such as the Netherlands, the UK, France, Spain, and Ireland. The organisation provides analysis and data services for measuring the efficacy of advertisement campaigns.
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