The global online advertising services market was valued at almost USD 171 billion in 2016 and is expected to surpass USD 295 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on online advertising for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the online advertising market during the forecast period. Some of the top vendors listed in this industry analysis include BBDO, Leo Burnett, Saatchi & Saatchi, Wunderman, and Ogilvy & Mather.
In terms of geographical analysis, North America led the market in 2016 with a market share of around 39%. The market is flourishing in this region owing to factors such as an increasing number of internet users, customers’ preference for online video ads, and adoption of technology.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “Increased preference for video advertising among organizations is an upcoming trend in the global online advertising market. The increasing adoption of video advertising is fueled by the rising preference among customers to watch videos over reading content or surfing the Internet. Buyers use visual content to promote their products as it gives clarity about its use, provides maximum impact, and makes the advertisement memorable.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Increased number of Internet users
The rapid increase in online ad spending is driven primarily by the surge in the number of Internet users across the globe. With the rapid adoption of devices such as desktop, laptop, smartphones, and tablets, the internet user penetration has increased as consumers prefer to stay connected with media and the entertainment world.
Growth in use of mobile devices
The rise in the adoption of smartphones is spurring an increase in online advertising. Advertisers are targeting mobile-based applications to advertise their product. Furthermore, there is a shift from mobile search to mobile applications, which is propelling the adoption of in-application advertising. The upsurge in the number of smartphone users also provides brands an opportunity to broaden their channels to promote advertising.
Shift to cost-effective channels of marketing
The global market is experiencing a surge in the cost of advertising services provided by marketing agencies. According to procurement analysts at Technavio, organizations spend an average of 8%-10% of their budget on marketing. However, budgetary constraints are prompting managers to opt for cost-effective channels such as the web and mobile advertising. Online advertising enables brands to reach their target customers effectively at a low cost. One such method is pay-per-click, or PPC wherein the advertiser pays only when a user clicks on the ad/link and visits the website.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Online Advertising – Procurement Market Intelligence 2017’.
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