Online Advertising Market is Anticipated to Register at a Healthy CAGR of 14% During the Forecast Period 2021 – 2031
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Additionally, with rapid adoption of smartphones worldwide, the way consumers interact with various sellers and brands has significantly transformed, mainly because of easily accessible high-speed Internet on smartphones. Also, in order to understand consumers’ interests and buying patterns, brands are switching to smartphone advertisements to stimulate consumer purchase decisions, thereby augmenting market growth for online advertising.
The global online advertising market is estimated to register a note worthy CAGR of 14% during the forecast period (2021-2031).
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Key Takeaways from Market Study
Demand for social media advertising is estimated to surge. However, search engine advertising is estimated to continue to hold a significant market share through 2031.
Travel & hospitality sector expected to emerge as high-growth market during the forecast period. This is mainly due to rising tourism industry, not only to make purchases through specific web pages, but also to access other technology such as social networks, search engines, etc., to which communication, advertising strategies, and sales are directed.
By ad format, the web/desktop format is estimated to hold substantial market share during the forecast period. However, the mobile-based ad format is expected to expand at a higher CAGR of over 15% during the next ten years.
The South Asia & Pacific market is expected to register a high CAGR, as the proliferation of social media and mobile apps is contributing toward high demand for online advertising across the region. Moreover, apps are gaining importance due to increasing indulgence in smartphones as well as gaming, especially in countries such as China, Indonesia, and India.
The market for online advertising in Japan and the U.K. is expected to surge at growth rates of around 17% and 16%, respectively.
Online advertising sales in the U.S. are anticipated to witness strong growth of close to 10% from 2021 to 2031.
The Indian market for online advertising is projected to expand at are markable CAGR of over 22% through 2031.
“Global spending on online video advertising continues to grow significantly, since it is positioned as the ideal medium for brand marketers and advertisers, combining the power and engagement of TV ads with the tracking, interactivity, and targeting of online advertising,” says a Persistence Market Research analyst.
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Search Engine Advertising and Display Advertising Likely to Become Most Sought-after
Search engine advertising (SEA) uses search engines such as Google and Bing. These search engines gives the opportunity to rank above organic search results with paid ads. Moreover, display advertising focuses on advertising with visual advertisements, often called banners. These come in many different shapes and sizes, and the channels on which one can use them are numerous. An interesting development within this trend is the use of remarketing, where the advertiser approaches groups of users who have visited a website before, and of whom they already know certain things about. This makes it possible to tailor the message even more specifically to the wishes and interests of a target group. Therefore, search engine advertising and display advertising are expected to play a key role in augmenting demand for online advertising over the coming years.
More Valuable Insights
Persistence Market Research’s report on the online advertising market is segmented into four major sections – ad format (social media advertising, search engine advertising (including PPC), email marketing, display advertising, native advertising, and others), platform (mobile and web/desktop), vertical (automotive, healthcare & medical, retail & CPG, education, media & entertainment, BFSI, travel & hospitality, telecom, and others), and region (North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa), to help readers understand and evaluate lucrative opportunities in this space.
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