The online ad spending market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market. Alphabet Inc., Alibaba Group Holding Ltd., Alliance Data Systems Corp., Amazon.com Inc., Baidu Inc., Dentsu Group Inc., Digital Turbine Inc., Eniro Group AB, GroupM, Hakuhodo DY Media Partners Inc. Co. Ltd., IAC InterActiveCorp, Meta Platforms Inc., Microsoft Corp., Reworld Media, Sohu.com Ltd., SXM Media, Tencent Holdings Ltd., The Interpublic Group of Companies Inc., Twitter Inc., and Verizon Communications Inc. are some of the major market participants. The online ad spending market is set to grow by USD 241.99 billion from 2021 to 2026, progressing at a CAGR of 10.98% according to the latest market forecast report by Technavio.
Online Ad Spending Market 2022-2026: Scope
Our online ad spending market report covers the following areas:
- Online Ad Spending Market size
- Online Ad Spending Market trends
- Online Ad Spending Market industry analysis
Online Ad Spending Market 2022-2026: Drivers & Challenges
The decline in offline ad spending is one of the key drivers supporting the online ad spending market growth. Due to the rising competition from digital avenues such as audio streaming services, spending on radio ads has declined in recent years. However, in 2020, the COVID-19 pandemic led to a further decline in radio ad spending. Due to the lockdowns, fewer people commuted to work, which resulted in reduced daily listenership, which constrained the global radio advertising market. For instance, in the US, the average unit ad rates per 30-second spot on radio networks declined by 18.2% in 2020 compared to 2019. Similarly, in India, radio ad volumes declined in Q1 2020 by 34% compared to the same period in the previous year. In April 2020, the number of brands advertising on radio in the country declined to 650 as compared to 2000 in March 2020. Thus, the decline in offline ad spending will positively impact the growth of the global online ad spending market during the forecast period.
However, Click fraud activities are one of the factors hindering the online ad spending market growth. With the increasing number of smartphone users, mobile advertising has become one of the fastest-growing segments of online advertising. Many ad publishers are engaged in ad stacking, click injecting, and running background ads on mobile apps. However, this has also increased the amount of in-app click frauds. For instance, in 2020, mobile apps had a share of 19% of all fraudulent clicks. Though not considered a click fraud activity, users can sometimes engage in behavior that could lead to an outcome similar to click fraud. Such instances can occur when a user regularly clicks on a PPC search ad to visit a particular website instead of navigating it directly from a search engine. Thus, click fraud activities can pose a challenge to online advertisers and lead to a decline in their revenues.
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Online Ad Spending Market 2022-2026: Segmentation Analysis
- Geography
- North America
- APAC
- Europe
- South America
- The Middle East And Africa
- Platform
- Mobile devices
- Desktops
Online Ad Spending Market 2022-2026: Regional Analysis & Revenue Generating Segment
- 41% of the market’s growth will originate from North America during the forecast period. The US is the key market for online ad spending market in North America. Market growth in this region will be faster than the growth of the market in MEA. The increased penetration of smartphones and strong broadband infrastructure will facilitate the online ad spending market growth in North America over the forecast period.
- The online ad spending market share growth by the mobile devices segment will be significant for revenue generation. Online advertising on mobile devices offers a better return on investment (ROI) than desktop computers. This segment is expected to experience high growth during the forecast period owing to the rising number of smartphone users globally. Mobile Internet advertising can host a variety of advertisements such as mobile videos and in-app advertisements via different platforms, which increase their outreach. With the increasing number of smartphone and tablet users across the world, mobile advertising has become one of the fastest-growing segments of the global online ad spending market. Such factors are driving the market growth.
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Online Ad Spending Market 2022-2026: Key Highlights
- CAGR of the market during the forecast period 2022-2026
- Detailed information on factors that will assist online ad spending market growth during the next five years
- Estimation of the online ad spending market size and its contribution to the parent market
- Predictions on upcoming trends and changes in consumer behavior
- The growth of the online ad spending market
- Analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of online ad spending market vendors
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