According to a report by Altus Market Research titled, “Digital Advertising Market Analysis 2022-2031 by Platform(Mobile Ad; Desktop Ad, Digital TV); Ad Format(Digital Display; Internet Paid Search; Social Media; Online Video); Industrial Vertical(Media; Consumer Goods & Retail; Banking And Logistics etc)”, the global digital advertising market size reached a value of nearly $486.0 billion in 2021, having grown at a compound annual growth rate (CAGR) of 18.5% since 2016. The market is expected to grow from $486.0 billion in 2021 to $980.2 billion in 2026 at a rate of 15.1%. The market is then expected to grow at a CAGR of 12.8% from 2026 and reach $1793.6 billion in 2031.
Growth in the historic period resulted from the strong economic growth in emerging markets, increased internet penetration, government initiatives in developing economies, rising penetration of e-commerce, increased availability of mobile devices, rapid development in technology, an increase in social media usage and the impact of COVID-19. Going forward, increasing advertising expenditure by end-use industries, rising urbanization, increasing adoption of 5G networks and the internet of things (IoT) will drive market growth. Factors that could hinder the growth of the Digital Advertising Market in the future include stringent regulations, intense competition, security challenges and data localization.
The global Digital Advertising market is highly concentrated, with large players. The top ten competitors in the market made up to 83.95% of the total market in 2021. Google was the largest competitor with 43.11% share of the market, followed by Meta Platforms, Inc. (Facebook) with 23.65%, Amazon.com, Inc with 6.41%, Microsoft Corporation with 3.70%, Alibaba Group Holdings Limited with 2.16%, Tencent with 2.07%, Baidu, Inc. with 1.37%, Twitter, Inc. with 0.93%, HULU LLC with 0.54% and Postmedia Network Canada Corporation with 0.01%.
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Market Growth by Segments:
The digital advertising market is segmented by platform into mobile ad (in-app and mobile web), desktop ad, digital TV and other platforms. The desktop ad market was the largest segment of the digital advertising market segmented by platform, accounting for 43.4% of the total in 2021. Going forward, the digital TV segment is expected to be the fastest growing segment in the digital advertising market segmented by platform, at a CAGR of 15.3% during 2021-2026.
The digital advertising market is also segmented by ad format into digital display ad, internet paid search, social media, online video and other ad formats. The internet paid search market was the largest segment of the digital advertising market segmented by ad format, accounting for 30.5% of the total in 2021. Going forward, the online video segment is expected to be the fastest growing segment in the digital advertising market segmented by ad format, at a CAGR of 20.5% during 2021-2026.
The digital advertising market is also segmented by industrial vertical into media and entertainment, consumer goods & retail industry, banking, financial service & insurance, telecommunication IT sector, travel industry, healthcare sector, manufacturing & supply chain, transportation and logistics, energy, power, and utilities and other industrial sectors. The banking, financial service & insurance market was the largest segment of the digital advertising market segmented by industrial vertical, accounting for 23.6% of the total in 2021. Going forward, the media and entertainment segment is expected to be the fastest growing segment in the digital advertising market segmented by industrial vertical, at a CAGR of 18.3% during 2021-2026.
Market Growth by Region:
North America was the largest region in the digital advertising market, accounting for 43.4% of the total in 2021. It was followed by Asia-Pacific and Western Europe, and then the other regions. Going forward, the fastest-growing regions in the digital advertising market will be Africa and the Middle East, where growth will be at CAGRs of 18.6% and 17.2% respectively. These will be followed by South America and Asia-Pacific, where the markets are expected to grow at CAGRs of 17.1% and 15.2% respectively.
Future Investment Opportunities:
The top opportunities in the digital advertising market segmented by platform will arise in the desktop ad segment, which will gain $214.4 billion of global annual sales by 2026. The top opportunities in the digital advertising market segmented by ad format will arise in the internet paid search segment, which will gain $143.8 billion of global annual sales by 2026. The top opportunities in the digital advertising market segmented by industrial vertical will arise in the banking, financial service & insurance segment, which will gain $106.8 billion of global annual sales by 2026. The digital advertising market will gain the most in the USA at $201.9 billion.
Market: Trend-based Strategies
Market-trend-based strategies for the digital advertising market include focus on offering interactive advertisements, use of artificial intelligence (AI), focus on storytelling advertisements, focus on augmented reality (AR), focus on conversational interfaces, focus on personalized email marketing, focus on advertising on streaming services and focus on partnerships and acquisitions.
Strategies by Key Players:
Player-adopted strategies in the digital advertising market include focus on strengthening digital advertising business through the launch of new policies, focus on strengthening business operations through the launch of new ad campaigns, focus on accelerating the delivery of digital advertising solutions through strategic acquisitions and focus on promoting a sustainable business culture through collaborations and partnerships.
Growth Strategies by Altus Market Research for Companies in the Market:
To take advantage of the opportunities, Altus Market Research recommends the digital advertising companies to increase focus on interactive advertising, use artificial intelligence (AI), invest in augmented reality, adopt conversational interfaces and chatbox, expand in emerging markets, focus on partnerships and acquisitions, provide competitively priced offerings, continue to participate in events and conferences, increase focus on social media marketing and target fast-growing end-use industries.
Competitive Landscape – Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
Tencent, Baidu, Inc., Twitter, Inc., HULU LLC, Postmedia Network Canada Corporation, Web Net Creatives, AdChina, Baidu Advertising, Sina Corp, Facebook Ads, Dentsu Aegis, Brandloom, Oxedent, Uplers, Dotcominfoway (DCI), SGK Inc, Havoc Digital, S4 Capital, Dentsu International, PwC’s Digital Services, Accenture Interactive, Boostability (Berlin), SQ Digital, Gorilla Marketing, OTM, RMAA Group, Netpeak, Webrentic, Slon Media, 25wat, Jstokes, Thrive Agency, Sizmek Technologies Inc, ArnoldStreet, SocialMedia55, Hawk Media, El Cielo Digital – Sabemos de Marketing Digital, DieciseisOnce, 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
