US Online Advertising Market Outlook to 2025
By Medium (Mobile and Desktop), By Type (Search, Social Media, Display, Video, Audio and Others), By Sectors (Retail, Automotive, Financial Services, Telecommunications, Leisure Travel, Consumer Packaged Goods, Electronics & Computers, Pharmaceuticals/Healthcare, Media, Entertainment and Others), By Pricing Models (Performance, Cost per Mile and Hybrid) and By Ad Buyers (Direct and Agencies)
Region:North America
Author(s):Aashima Mendiratta
Product Code:KR906
October 2019
132
About the Report
The report titled “US Online Advertising Market Outlook To 2025 – By Medium (Desktop and Mobile), By Type (Search, Social Media, Display, Video, Audio and Others), By Sectors (Retail, Automotive, Financial Services, Telecommunications, Leisure Travel, Consumer Packaged Goods, Electronics & Computers, Pharmaceuticals/Healthcare, Media, Entertainment and Others), By Pricing Model (Performance, Cost per Mile and Hybrid) and By Ad Buyers (Direct and Agencies)” provides a comprehensive analysis on the US Digital Advertising Industry. The report covers various aspects including introduction of online advertisement market, value chain, market size and segmentations by advertisement expenditure, comparative landscape, growth drivers, trends and developments, issues and challenges in the market, successful digital ad campaigns, customer profiling and the regulatory framework of the industry The report concludes with market projections for future described above and analyst recommendations highlighting the major opportunities and cautions for the US online advertisement market.
US Online Advertising Market Size and Overview
The digital advertising market has experienced exponential growth over the last few years. The shortcomings of traditional advertising mediums including lack of traceability and targeting have stimulated the shift towards digital advertising mediums. The rising internet and smart phone penetration in the country as well as the rapid adoption of social media in the country among all age-groups have been the primary factors propelling the consistent double-digit growth of the digital advertising industry in the country. The introduction of varied new ad-formats as well as the adoption of technologies such as Machine Learning and Artificial Intelligence to improve the targeting and measurability of digital ads has made digital advertising a preferred medium. Owing to these factors, the industry witnessed a double-digit CAGR of 20.2% over the review period 2013-2018.
US Online Advertising Market Segmentation
By Medium (Mobile and desktop): Due to the increasing penetration of smart phones and tablets in the country, mobile medium received a greater share in the digital advertising expenditure in 2018. The widespread use of social media through mobile devices has also propelled the shift towards mobile advertising.
By Type of Advertising (Search, Social Media, Display, Video, Audio and Others): Search advertising accounted for the highest share in the industry owing to the rise of keywords based advertising on not just search engines but also e-commerce platforms. Social media advertising received the second highest digital ad spending followed by display, video, audio and other types of ads. Social media advertising showcased the fastest growth due to the introduction of new ad formats such as shoppable ads, influencer marketing and more.
By Ad Buyers (Agencies and Direct): Majority of the ad buying took place through advertising agencies in 2018. Direct ad buying by brands accounted for a meager share in the digital advertising market due to the lack of in-house talent and requisite technologies by advertisers.
By Sectors (Retail, Automotive, Financial Services, Telecommunications, Leisure Travel, Consumer Packaged Goods, Electronics & Computers, Pharmaceuticals/Healthcare, Media, Entertainment and Others): The retail sector dominated the digital advertising market in terms of advertising expenditure. The review period saw a rise in e-commerce spending in the country which led to rise in the digital spending by the retail sector. Other sectors including Automotive, Financial Services, Telecommunications and Leisure Travel also contributed significant share to the total digital advertising expenditure.
By Pricing Model (Performance, Cost per Mile and Hybrid): The performance models including CPA, CPC among others received the maximum digital advertising expenditure in the country in 2018 as advertisers in the US are concerned about the measurability of the ads and hence prefer action based models. The CPM model also saw a rise over the review period among advertisers aiming to widen their reach.
Comparative Landscape in the US Online Advertising Market
There are a large number of advertising agencies operating in the US Online Advertising Market. The top five holding companies including WPP, Omnicom Group, Interpublic Group of Companies, Publicis Groupe and Dentsu Inc dominated the market in 2018 in terms of billings. These companies own most of the major advertising agencies in the country. These agencies compete on various parameters such as pricing of the services offered (average hourly rate), minimum project size, service portfolio, major clientele and flexibility. The supply side of the digital advertising market on the other hand is dominated by the duopoly of Google (including YouTube) and Facebook (including Instagram).
US Online Advertising Market Future Outlook and Projections
The digital advertising expenditure is expected to surpass the traditional advertising owing to the spurring smart phone and internet penetration among the population in the US. The introduction of 5G internet technology is expected to be one of the major growth drivers impacting the market as advertisers are now likely to adopt new ad formats due to better internet infrastructure and speed. Adoption of new technologies such as Artificial Intelligence, Augmented & Virtual Reality to improve the targeting, measurability and efficiency of internet ads is further expected to positively impact the digital advertising market in the country.
Key Topics Covered in the Report
- US Online Advertising Market Introduction (Historical Evolution, Overview, Genesis, Business Cycle)
- US Online Advertising Market Size, 2013-2018
- US Online Advertising Market Segmentation, 2013-2018
- SWOT Analysis of US Online Advertising Market
- Growth Drivers, Trends and Developments in US Online Advertising Market
- Issues and Challenges in US Online Advertising Market
- Regulatory Framework in US Online Advertising Market
- Customer Profiling in US Online Advertising Market
- Case Studies Covered in US Online Advertising Market
- Competitive Landscape in US Online Advertising Market
- US Online Advertising Market Future Outlook and Projections, 2019-2025F
- Analyst Recommendations
Products
Key Target Audience
- Advertising Agencies
- Social Networking Platforms
- End User Industries Investing in Digital Advertising
- Regulatory Bodies and Government Agencies
- Investors
Time Period Captured in the Report:
- Historical Period: 2013-2018
- Forecast Period: 2019-2025
Companies
Key Segments Covered
By Type (On the Basis of Ad Expenditure)
- Digital Advertising Market
- Traditional Advertising Market
By Medium (On the Basis of Ad Expenditure)
- Desktop Advertising
- Mobile Advertising
By Type of Advertisement (On the Basis of Ad Expenditure)
- Search Advertising
- Social Media Advertising
- Display Advertising
- Video Advertising
- Audio Advertising
- Other Advertising (Native Advertising, Classifieds, Lead Generation, Buzz/Content Advertising, Email Marketing and more)
By Ad-Format on the Basis Of Platforms (On the Basis of Ad Expenditure)
Social Media Advertising
- Others
Search Advertising
- Yahoo & Bing
- Amazon
- Others
Video Advertising
- YouTube
- Others
Further Segmentation by Medium (Desktop and Mobile, On the Basis of Ad Expenditure), 2013-2018
Social Media Advertising
- Mobile
- Desktop
Video Advertising
- Mobile
- Desktop
Search Advertising
- Mobile
- Desktop
Audio Advertising
- Mobile
- Desktop
Other Advertising (Native Advertising, Classifieds, Lead Generation, Buzz/Content Advertising, Email Marketing and more)
- Mobile
- Desktop
By Sectors (On the Basis of Ad Expenditure)
- Retail
- Automotive
- Financial Services
- Telecommunications
- Leisure Travel
- Consumer Packaged Goods
- Electronics & Computers
- Pharmaceuticals/Healthcare
- Media
- Entertainment
- Others (Real-Estate, Education, Agrochemicals, Energy, Construction and more)
By Ad-Buyers (On the Basis of Ad Expenditure)
- Direct
- Ad Agencies
By Pricing Model (On the Basis of Ad Expenditure)
- Performance
- Cost Per Mile
- Hybrid
Companies Covered in US Online Advertising Market:
Major Ad Agencies
- WPP
- Interpublic Group of Companies
- Publicis Groupe
- Omnicom Group
- Dentsu Inc.
Major Online Platforms
- Google (including YouTube)
- Facebook (including Instagram)
- Amazon
- Microsoft (including LinkedIn)
- Verizon Media
Table of Contents
1. Executive Summary
2. Research Methodology
2.1. Market Definitions
2.2. Abbreviations
2.3. Market Sizing and Modeling
2.4Market Sizing Approach- US Online Advertising Market
2.5Market Size Inclusion Table
2.6Limitations
2.7Final Conclusion
Variables (Dependent and Independent)
Multi Factor Based Sensitivity Model
Regression Matrix
3. US Online Advertising Market Ecosystem (Brands, Advertising Agencies, Content Creation Companies, Publishers, Audience and Industry Associations)
4. US Online Advertising Market Value Chain Analysis (Entities Including Advertisers, Advertising Agencies, Ad Networks, Ad Servers, Trading Desks, Demand Side Platforms, Ad Exchange, Supply Side Platforms, Publishers, End Users)
4.1. Working of Demand Side Platforms and Buy-side Model
4.2. Working of Supply Side Platforms and Sell-Side Model
5. US Advertising Market Snapshot, 2018
6. US Online Advertising Market Introduction and Overview
6.1. US Online Advertising Market Historical Evolution
6.2. US Online Advertising Market Overview, Genesis and Business Cycle Graph
6.3. US Advertisement Market (Digital and Traditional), 2013-2018
7. US Online Advertising Market Size (including Market Growth, Supporting Statistics, Key Catalysts for Market Growth and Seasonality), 2013-2018
7.1. By Advertising Expenditure, 2013-2018
8. US Online Advertising Market Segmentation, 2013-2018
8.1. By Medium (Mobile and Desktop)(On the Basis of Advertising Expenditure and Share, Device Usage, Average Internet Speed, Web Visits, Average Pages Viewed per Visit, Major User Base, E-Commerce Conversion Rate, Major Ad-Formats, Major Sectors Spending Actively and Major Online Activities), 2013-2018
8.2. By Type of Advertising (Search, Social Media, Display, Video, Audio and Others) (On the Basis of Advertising Expenditure and Share, Usage Statistics, Major Target Audience, Major Platforms, Major Industries and Preferred Pricing Models), 2013-2018
8.2.1. Further Segmentation by Medium (Mobile and Desktop), 2013-2018
8.3. By Type of Ad-Buyers (Direct and Agencies)
8.4. By Sectors (Retail, Financial Services, Automotive, Telecom, Leisure Travel, Consumer Goods, Electronics and Computers, Pharmaceuticals/Healthcare, Media, Entertainment and Others), 2013-2018
8.5. By Pricing Model (Performance, Cost-per-Mile and Hybrid), 2013-2018
9. Programmatic Advertising in US Online Advertising Market (Types, Major Sectors Using Programmatic Advertising, Issues Faced, Upcoming Trends and Case Study)
Case Study: How Alaska Airlines Leveraged Programmatic Advertising to Fill its Empty Seats
10. Customer Profiling in US Online Advertising Market (Economic Indicators, Internet Usage Statistics on the basis of Gender, Age Group, Frequency, Mobile Internet Activities, Social Media Platforms Usage and Frequency) 2018
11. Regulatory Scenario in US Online Advertising Market (Federal Laws, State Laws, Self-Regulatory Principles and Other Regulations)
12. Trends and Developments in the US Online Advertising Market
13. Issues and Challenges in the US Online Advertising Market
14. SWOT Analysis of US Online Advertising Market
15. Successful Digital Ad Campaigns in US
15.1. How IHOP Successfully Increased its Burger Sales without Affecting its Breakfast Business through the Power of Social Media
15.2. How Starbucks Broke the Internet and Enhanced Its Sales With a Limited Edition Unicorn Frappuccino
16. Decision Making Criteria for Clients in US Online Advertising Market
17. Comparative Landscape in US Online Advertising Market, 2018
17.1. Competition Scenario (Competition Stage, Major Players, Competing Parameters)
17.2. US Online Advertising Major Platforms (Google including YouTube, Facebook including Instagram, Amazon, Microsoft including LinkedIn and Verizon Media) Market Share Analysis including Advertising Revenue, Usage Statistics, Type of Advertisements, Age & Gender Demographics and Total Advertising Audience)
17.3. Market Share Analysis by Type Of Advertising On The Basis Of Platform (Facebook, Instagram, Google, Yahoo & Bing, Amazon, YouTube and Others), 2018 and 2025F
17.4. Strengths and Weaknesses of Major Advertising Agencies (Interpublic Group of Companies, WPP, Omnicom Group, Publicis Groupe and Dentsu Inc) in the US Online Advertising Market
17.5. Company Profiles of Major Advertising Agencies in US (Company Overview, Service Portfolio, Major Advertising Companies, Major Clientele, Revenue, Awards & Achievements and Recent Developments)
17.5.1. WPP plc
17.5.2. Omnicom Group
17.5.3. Publicis Groupe SA
17.5.4. Interpublic Group of Companies Inc. (IPG)
17.5.5. Dentsu Inc.
18. US Advertisement Market (Digital and Traditional) Future Outlook and Projections, 2025F
19. US Online Advertising Market Future Outlook and Projections (Market Growth, Key Catalysts for Market Growth and Potential Threats), 2018-2025
19.1. By Advertising Expenditure, 2018-2025F
20. US Online Advertising Market Segmentation Future Outlook and Projections, 2018-2025F
20.1. By Medium (Mobile and Desktop), 2018-2025F
20.2. By Type of Advertising (Search, Social Media, Display, Video, Audio and Others), 2018-2025F
20.2.1. Further Segmentation By Medium (Mobile and Desktop), 2018-2025F
20.3. By Type of Ad-Buyers (Direct and Agencies), 2025F
20.4. By Sectors (Retail, Financial Services, Automotive, Telecom, Leisure Travel, Consumer Goods, Electronics and Computers, Pharmaceuticals/Healthcare, Media, Entertainment and Others), 2018-2025F
20.5. By Pricing Model (Performance, Cost-per-Mile and Hybrid), 2018-2025F
21. Analyst Recommendations for US Online Advertising Market
Disclaimer
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