Press release
Why Invest in USD 1.08 Trillion Internet Advertising Market Which Reach by 2027 at 17.2% CAGR
Increase in adoption of smartphones, emergence of high speed internet, proliferation of social media, growing expenditure on digital media across various industries, and surge in popularity of streaming platforms fuel the growth of the global internet advertising market. On the other hand, rising adoption of ad-blockers to avoid online advertising impedes the growth to some extent. Nevertheless, emergence of advertising automation and rise in adoption of identity-based pay-per-click (PPC) marketing are expected to create multiple opportunities in the industry.
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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 internet advertising market is segmented on the basis of type, platform, organization size, industry vertical, and region. On the basis of type, it is categorized into search engine advertising/search engine marketing, display advertising, mobile advertising, social media advertising, video advertising, online classifieds ads, and others. Based on platform, it is classified into mobile; laptop, desktop, & tablets; and others. As per the enterprise size, it is bifurcated into large enterprises and small & medium-sized enterprises. Depending on industry vertical, it is divided into automotive, healthcare, media & entertainment, BFSI, education, retail & consumer goods, transport & tourism, IT & telecom, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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Covid-19 Scenario
● Rise in utilization of social media during the pandemic led to an increased drift to take recourse to social media platforms to promote various media content with the target audience, which impacted the global market for Internet advertising positively.
● The advertising of the media and entertainment content over Twitter, Facebook, and Instagram has also become a trend in recent times.
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Based on platform type, the mobile segment contributed to nearly two-thirds of the global internet advertising market share in 2019 and is expected to retain its dominance by the end of 2027. The same segment is also projected to register the fastest CAGR of 18.9% throughout the forecast period, owing to various factors such as increase in mobile internet users, growth in popularity of social media, and time spent on mobile devices.
Based on pricing model, the performance-based segment garnered more than half of the total market revenue in 2019 and is expected to lead the trail by 2027. At the same time, the hybrid segment would manifest the fastest CAGR of 22.7% throughout the forecast period.
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Based on geography, North America garnered the highest share in 2019, holding around two-fifths of the global internet advertising market, owing to surge in advertisers' expenditure on digital advertising. Asia-Pacific, on the other hand, would exhibit the fastest CAGR of 21.6% from 2020 to 2027. Particularly, in countries, such as India, China, and Indonesia, apps are growing importance due to the ubiquity of smartphone usage as well as gaming. This factor has driven the market growth.
The key market players analyzed in the global internet advertising market report include Google LLC, Baidu, Inc., Amazon.com, Inc., Hulu LLC.., Alibaba Group Holding Limited, Facebook, Inc., Microsoft Corporation, Twitter Inc., International Business Machines Corporation, and Verizon Communications Inc. These market players have taken recourse to several strategies including partnership, expansion, collaboration, joint ventures, and others to prove their flair in the industry.
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