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Digital Advertising Market Trends That Will Shape the Next Decade: Insights from Augmented Reality (AR) Revolutionizing The Global Digital Advertising Market
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.Digital Advertising Market Size Growth Forecast: What to Expect by 2025?
The expansion of the digital advertising market has been quick and impressive in the last few years. Its growth is anticipated to continue, escalating from $734.24 billion in 2024 to $843.48 billion in 2025, representing a Compound Annual Growth Rate (CAGR) of 14.9%. The surge during the historic period is due to factors such as an upswing in advertising spend, a rise in the penetration of e-commerce, a proliferation of smartphone usage, and an increase in the utilization of social media.
How Will the Digital Advertising Market Size Evolve and Grow by 2029?
In the forthcoming years, the digital advertising market is poised for a significant expansion, anticipated to reach $1426.63 billion by 2029 with a compound annual growth rate (CAGR) of 14.0%. Factors such as the amplified internet access, governmental backing for digital advertising, and escalating urban development are the prime elements contributing to this growth in the projected span. Key trends that will shape this market during the forecast period encompass the concentration on strategic alliances and collaborations to bolster financial robustness, investment in AI-driven apps for digital advertising, the exploitation of digital out-of-home (DooH) advertising strategies to reach specific audiences, the surge in demand for engaging and personalized interactive advertising, incorporation of augmented reality (AR) for an immersive experience and the launching of 3D solutions in advertising campaigns.
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What Drivers Are Propelling the Growth of Digital Advertising Market Forward?
The surge in the number of internet users and the emergence of self-service platforms are major factors fueling the expansion of the worldwide digital advertising sector. The internet is being vastly utilized for purposes such as e-commerce, e-learning, networking, media, communication, and file sharing. Data from Internet World Stats indicate that as of June 2022, there are 5.385 billion internet users globally, making up over 67.9% of the world's population. Alongside this, the rising appeal of self-service advertising platforms greatly boosts the digital advertising market. These platforms offer advertisers the ease of conveniently positioning their ads and managing their campaigns independently, without the hassle of intermediating human involvement. Consequently, the swelling base of internet users combined with self-service platforms are advancing the market.
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Which Emerging Trends Are Transforming the Digital Advertising Market in 2025?
Technological progress like augmented reality (AR) is quickly gaining traction in the worldwide digital advertising scene, being one of the major trends. Augmented reality has been embraced by advertisers in recent times as a way to improve the customer experience with their ads. A clear example is that of Darabase, an American software corporation that launched an AR advertising platform in November 2023. This new platform transforms the advertising field by allowing physical properties to be converted into profitable AR billboards efficiently. Through Property Digital Rights (PDRs), it streamlines the permission process for AR advertising and enables owners to manage and derive revenue from their properties. The essential features of this platform are the registration of PDRs as secure tokens on the Polygon Blockchain, visibility in rights management, and no cost registration offered for the first 1,000 properties. Such an inventive platform enables property owners to participate in the flourishing $680 billion digital advertising industry while ensuring advertiser security and augmenting customer involvement.
What Are the Key Segments in the Digital Advertising Market?
The digital advertising market covered in this report is segmented -
1) By Platform: Mobile Ad (In-App And Mobile Web), Desktop Ad, Digital TV, Other Platforms
2) By Ad Format: Digital Display Ad, Internet Paid Search, Social Media, Online Video, Other Ad Formats
3) By Industrial Vertical: Media And Entertainment, Consumer Goods And Retail Industry, Financial Service And Insurance, Telecommunication IT Sector, Travel Industry, Healthcare Sector, Manufacturing And Supply Chain, Transportation And Logistics, Energy, Power And Utilities, Other Industrial Verticals
Subsegments:
1) By Mobile Ad (In-App and Mobile Web): In-App Advertisements, Mobile Web Ads, SMS and MMS Advertising
2) By Desktop Ad: Display Ads, Search Engine Ads, Native Ads, Email Marketing Ads
3) By Digital TV: Connected TV Advertising, Over-the-Top (OTT) Advertising, Addressable TV Advertising
4) By Other Platforms: Social Media Ads, Digital Out-of-Home (DOOH) Advertising, Podcast Advertising, Influencer Marketing Platforms
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Who Are the Key Players Shaping the Digital Advertising Market's Competitive Landscape?
Major companies operating in the digital advertising market include Google, Meta Platforms, Inc. (Facebook), Amazon.com, Inc, Microsoft Corporation, Alibaba Group Holdings Limited, HULU LLC, Tencent, Saga Communications, Inc, Twitter, Inc., AdChina, Baidu Advertising and Sina Corp, S4 Capital, Dentsu International, PwC's Digital Services, accenture* Interactive, Boostability (Berlin), SQ Digital, Gorilla Marketing, OTM, RMAA Group, Netpeak (Moscow), Webrentic, Slon Media (Moscow), 25wat, Jstokes, Thrive Agency, Sizmek Technologies Inc, ArnoldStreet, SocialMedia55, Hawk Media, El Cielo Digital - Sabemos de Marketing Digital, DieciseisOnce.com, SEOnet, Dicore Digital, Punto Rojo, Sherlock Communications, Centrico Digital, FP7 McCANN, Tonic International, MullenLowe MENA, Elephant Nation, BPG Group, Mars Media Group, Intango, Executive Digital, Pyramedia Group, 3points, Boopin, Maat Marcom Agency, Borarong Consulting, SyberGrupe, BlueMagnet, Rushing Tap, Watson Ferguson Marketing Agency
What Geographic Markets Are Powering Growth in the Digital Advertising Market?
North America was the largest region in the digital advertising market in 2024. Asia-Pacific was the second largest region in the digital advertising market report. The regions covered in the digital advertising market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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