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Contextual Advertising Global Market 2024 - Driving Factors, Industry Challenges, Business segmentation, Leading countries And Forecast To 2033
Contextual Advertising Global Market
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According to The Business Research Company's, The contextual advertising market size has grown rapidly in recent years. It will grow from $192.32 billion in 2023 to $211.62 billion in 2024 at a compound annual growth rate (CAGR) of 10.0%. The growth in the historic period can be attributed to growth of social media platforms, increasing mobile and smartphone usage, increasing the number of social media users, rising demand for personalized and relevant advertising, and increasing digital advertising spending.
The contextual advertising market size is expected to see rapid growth in the next few years. It will grow to $313.53 billion in 2028 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to growth of programmatic advertising, expansion of omnichannel marketing, growth of video and interactive content, increasing focus on privacy, and the emergence of video and audio advertising. Major trends in the forecast period include natural language processing (NLP) technologies, augmented reality (AR) and virtual reality (VR), adoption of 5G technology, advancements in real-time contextual advertising, and advancements in data analytics.
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Market Drivers and Trends:
The rising demand for digital advertising is expected to propel the growth of the contextual advertising market going forward. Digital advertising is using online platforms and digital channels to deliver promotional messages to target audiences. The demand for digital advertising is due to increased online activity, targeted advertising, cost-effectiveness, and social media influence. Contextual advertising enhances digital advertising to create a more seamless and practical advertising experience by ensuring that ads are pertinent to the content being viewed. For instance, in April 2024, according to the Interactive Advertising Bureau (IAB), a US-based trade organization that represents the digital media and advertising industry, in 2023, the US digital advertising industry set a new record, with internet advertising revenues reaching $225 billion, marking a 7.3% increase year-over-year (YoY) from 2022. Therefore, the rising demand for digital advertising drives the contextual advertising market.
Major companies operating in the contextual advertising market are focused on incorporating artificial intelligence (AI) networks into contextual advertising to enhance the relevance and effectiveness of advertisements. Artificial intelligence integration in contextual advertising makes ads more relevant, timely, and personalized while improving user experience and campaign efficiency. For instance, in March 2024, Seedtag, a Spain-based contextual advertising company, launched a groundbreaking service called Contextual TV, explicitly designed for advertisers in the connected TV (CTV) space. This innovative solution integrates AI-driven insights, contextual data, and custom creativity to enhance the effectiveness of CTV advertising campaigns. The service utilizes AI-based network dynamics to analyze viewer behavior and preferences, enabling advertisers to create tailored content that resonates with their target audiences.
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Major Key Players of the Market:
Amazon.com Inc., Alphabet Inc., Microsoft Corporation, Verizon Media Inc., Meta Platforms Inc., SAP SE, Adobe Inc., IAC Inc., The Trade Desk Inc., Taboola Inc., Outbrain Inc., Amobee Inc., Zeta Global Holdings Corporation, Beijing Miteno Communication Technology Co. Ltd., Marke*to Inc., InMobi, Flytxt B.V., Simplify360 Inc., Infolinks Media LLC., Act-On Software Inc., Sendible Limited
Contextual Advertising Market 2024 Key Insights:
• The contextual advertising market size is expected to see rapid growth in the next few years. It will grow to $313.53 billion in 2028 at a compound annual growth rate (CAGR) of 10.3%.
• Rising Demand For Digital Advertising Growth In Contextual Advertising
• Innovative Solutions In Contextual Advertising With AI Integration
• North America was the largest region in the contextual advertising market in 2023
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