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Driving Digital Ad Spending Market Growth in 2025: The Role of Mobile Revolution Drives Digital Ad Spending
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.Digital Ad Spending Market Size Growth Forecast: What to Expect by 2025?
The market size for digital ad spending has seen robust growth in the past few years. It is projected to increase from $649.18 billion in 2024 to $711.75 billion in 2025, reflecting a compound annual growth rate (CAGR) of 9.6%. Factors driving this growth in the past have been the rise in internet usage, widespread availability of mobile devices, growth of social media, advancement in data analytics and targeting, development of e-commerce, and the surge in video content consumption.
How Will the Digital Ad Spending Market Size Evolve and Grow by 2029?
We anticipate a significant rise in the dimensions of the digital advertising spend market in the upcoming years. A surge to "$1030.75 billion by 2029 is projected, with a cumulative annual growth rate (CAGR) of 9.7%. The potent expansion during the prediction span can be accredited to the ascension of connected TV ads, the proliferation of interactive and shoppable commercials, adherence to privacy laws, sustainability, and social responsibility, along with the progress in nascent markets. The forecast period will witness key trends such as the burgeoning of programmatic advertising, the advent of mechanisms to prevent ad fraud, the emergence of novel ad formats, integration of content marketing, synergy across various channels, and blending of artificial intelligence and machine learning.
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What Drivers Are Propelling the Growth of Digital Ad Spending Market Forward?
The digital ad spending market is likely to see significant growth due to an increase in tablet and smartphone usage. Tablets and smartphones, acting as mobile devices that facilitate internet access, running applications, and various other functions like video watching, gaming, and video calling are factored into this. The consumption of digital content including display ads, videos, social media ads, and in-app ads have raised the prominence of these mobile devices in the advertising sector. Digital ad market growth is spurred by advertisers adjusting their strategies to reach their audiences through mobile devices. For instance, Demandsage, a US-based automated reporting platform known for its effective use of data science, noted in December 2023 that there were approximately 6.6 billion smartphone users across the globe as of 2022. This was a 4.2% rise from the previous year's statistics. Therefore, the penetration of tablets and smartphones is instrumental in fuelling the digital ad market's growth.
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Which Emerging Trends Are Transforming the Digital Ad Spending Market in 2025?
Technological advancements are becoming an increasingly important trend within the digital advertisement spending industry. Top players in this field are integrating innovative technologies like artificial intelligence, augmented reality, virtual reality, machine learning, and blockchain to maintain their market presence. For instance, Verizon Media, an American company that offers tech, communications, info, and entertainment goods and services, launched their Next-Gen Solutions suite in January 2023. This suite offers ads that are relevant and do not rely on cookies or mobile app IDs, it harnesses content and real-time data like weather, location, and device types to power machine learning algorithms. These algorithms successfully link advertisers to appropriate audiences without requiring user-level profiles or browser storage. In addition, the Next-Gen Buying feature by Verizon Media uses machine learning algorithms to optimize the connection between advertisers and audiences without the reliance on cookies, mobile app IDs, browser storage, or user-level profiling.
What Are the Key Segments in the Digital Ad Spending Market?
The digital ad spending market covered in this report is segmented -
1) By Add Format: Display Ads, Social Media, Native Advertising, Search Ads, Video Ads, Other Add Format
2) By Platform: Mobile, Laptop, Desktop
3) By End User: Retail, Health care, Automotive, Media And Entertainment, Education, Transport And Tourism, IT And Telecom
Subsegments:
1) By Display Ads: Banner Ads, Rich Media Ads, Interstitial Ads, Pop-Up Ads
2) By Social Media: Sponsored Posts, Stories Ads, Carousel Ads, Messenger Ads
3) By Native Advertising: Sponsored Content, In-Feed Ads, Recommendation Widgets
4) By Paid Search Ads: Pay-Per-Click (PPC) Ads, Product Listing Ads, Local Search Ads, Text Ads
5) By Video Ads: In-Stream Ads, Out-Stream Ads, Interactive Video Ads, Social Video Ads
6) By Other Ad Format: Email marketing, Affiliate marketing, Influencer marketing, Podcast Ads
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Who Are the Key Players Shaping the Digital Ad Spending Market's Competitive Landscape?
Major companies operating in the digital ad spending market include Microsoft corporation, Google LLC, Meta Platforms Inc., Hulu LLC, Ignite Visibility LLC, L7 Creative, Alibaba Group Holdings Limited, Amazon Web Services Inc., Baidu Inc., Coalition Technologies LLC, Dentsu Group Inc., Disruptive Advertising Inc., Effective Spend, Omnicom Group, Publicis Groupe, Tencent Holdings Limited, Adobe Inc., The Trade Desk Inc., Verizon Communications Inc., Twitter Inc., Pinterest Inc., Snap Inc., Roku Inc., Spotify Technology S.A., Expedia Group, TripAdvisor Inc., JD.com Inc., Criteo SA, InterActiveCorp, Datorama Inc., PubMatic Inc., Magnite Inc., Taboola, Outbrain Inc., AdRoll Group, Rubicon Project Inc., Xandr Inc., OpenX, MediaMath Inc.
What Geographic Markets Are Powering Growth in the Digital Ad Spending Market?
North America was the largest region in the digital ad spending market in 2024. The regions covered in the digital ad spending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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