Internet advertisement: Key market research findings
- The Americas dominate the market geographically
- Search ads account for a majority of the market’s revenue
- Key vendors – Facebook, Google, LinkedIn, Microsoft, One by AOL, Twitter, and Yahoo
Technavio’s market research analysts predict the global market for internet advertisement to grow at a CAGR of more than 11% between 2016 and 2020. The higher brand recalling capability of internet advertisements is the primary driving force behind its increased adoption across the globe. Online advertisements involve better interaction with the audience as compared to other digital advertisements. In internet advertising, the audience has a choice to skip an advertisement, but only after a small duration. Online advertisements are much shorter than television advertisements and have a higher completion rate. The Americas held more than 43% of the overall market share to become the dominant shareholder in the global internet advertising market during 2015. The rising popularity of mobile advertisement in the region is expected to contribute to the growth of the internet advertising market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the internet advertisement segments based on the type.
“One of the key trends in the global internet advertising market is the upsurge in the use of social media for advertising. Social media is rapidly becoming one of the lucrative platforms for advertising since it caters to a large audience that is proactively engaged online. These platforms also provide advertisers with efficient targeting options and enhanced conversion tracking as they utilize the user’s interests,” says Ujjwal P. Doshi, Lead Analyst, Media & Entertainment, Technavio Research.
In 2015, the search advertisement segment accounted for around 36% of the overall market revenue to become the key revenue generating vertical in the global internet advertisement market. However, our analysts have observed that this segment will continue its market dominance until 2020 owing to the high penetration of e-commerce globally. Currently, Google leads this segment with its revenue from search ads increasing by around 16% in 2015 as compared to the previous year. However, Google faces tough competition from Baidu, which is benefitting from the ban on Google in China. Baidu is also expanding its market footprint and profiting from the growing population of internet users in the country.
The key vendors in the global internet advertisement market include Facebook, Google, LinkedIn, Microsoft, One by AOL, Twitter, and Yahoo. Intense competition, strategic M&A, rapid advances in technology, and frequent changes in consumer preference constitute significant risk factors for the vendors in the market. With the increased competition, the market is witnessing consolidation. Therefore, to survive and succeed in this market, it becomes imperative for vendors to distinguish their product and service offerings through a clear and unique value proposition.
A more detailed analysis is available in the Technavio report, Global Internet Advertisement Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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