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Global Digital Advertisement Market: Current Analysis and Forecast (2020-2026)

Region:Global

Product Code:UMME20188

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Published On

October 2020

Total pages

217

About the Report

Advertising plays an important role in determining the image of the product thereby helping the consumers in their buying decision of the product. The pressure of advertising has been growing each day with the rising influence of social media, increasing smartphone and internet penetration, and surging level of awareness. A significant amount of money is spent on advertising campaigns bringing to the companies multi-billion profits. Moreover, it is a "product of the first necessity" for any enterprise, aimed at commercial success, and its spending is further becoming more and more expensive. Traditional media communication medium was once considered an imperative form of advertising a few years ago, however, in recent years the digital media is prospering considerably and it has become one of the pivotal modes of communication in marketing and advertising for building brand sustainability. Digital Marketing has become more famous after the involvement of the latest technologies in businesses. It has been estimated that in 2018 digital advertising spending worldwide was accounted for USD 283.35 Billion and is anticipated to reach USD 517.51 Billion by 2023. Based on Ad format, the report segments the Global Digital Advertising market into search advertising, banner advertising, social media advertising, video advertising and classifieds. In 2019, the search advertising segment dominated the market and is expected to remain dominant throughout the forecast period 2020-2026. Search advertising allows the user to directly display paid advertisements among the search results on various search engines, like Google, Bing, and Yahoo.

Based on the programming type, the market is segmented into programmatic and non-programmatic type. In 2019, the programmatic segment held the lead share in the Global Digital Advertisement market as they represent the greatest penetration and user accessibility in the respective market. Based on the platform, the market is segmented into desktop and mobile platforms. In 2019, the Mobile platform generated revenue of USD 189.3 Billion in the Global Digital Advertising market. Given the prominence of smartphones and internet penetration, it has been observed that in the United States online advertising market, mobile internet advertising revenue showcased significant growth due to the growing adoption of mobile devices. The respective segment revenue swelled to USD 70 billion in 2018 from USD USD 7 billion in 2013, growing at a CAGR of 58% which surpassed desktop advertising revenues in 2017. To add on, considering the India Digital Advertising market, customers of the new generation check their smart devices every 9.6 minutes. There are 220 Million users who are accessing digital services through their smartphones. Further, the number of mobile internet users by 2021 in India is estimated to reach 829 million.

Based on the industry, the market is bifurcated into retail, automotive, financial services, telecom, consumer products, travel, and others. The retail sector occupied the largest share in 2019. The omnichannel approach adopted by the retail sector in digital marketing as it helps to map the customer's journey and results in inconsistency in every turn along with widespread applications of customer service chatbots being embraced by retailers has led to the major contribution of the sector. Several established players have already earmarked their presence in the respective market while new players have also forayed into the digital advertisement market. Digital media has been the harbinger of growth for the advertising industry across the globe in the last few years. Every year a sustainable proportion of advertising budget is being spent on digital media and it is growing every year. For instance, Zappos, American Express, Mint, Dollar Shave Club, The Wirecutter among others tend to implement a dynamic digital marketing strategy that increased company ROI and added value to customers These factors have widened the scope for the market. Key companies such as Facebook, Google and Apple Inc are also leading among consumers with their initiatives on online advertising trends. For a deep-dive analysis of the advertising trend, detailed regional level analysis has been conducted including North America, Europe, Asia-Pacific, and the Rest of the World. North America occupied the maximum share in the digital advertising market in 2019. With the United States witnessing the marked shift in dynamics over the last decade due to surge in digital advertising accredited to significant growth in mobile internet advertising along with digital ad spending in the country exceeding USD 100 billion in 2018 has catalyzed the regional performance in the respective market. Alibaba, Amazon, Facebook Inc, Alphabet, Microsoft Corporation, Sina, Nokia Corporation, Tencent, Twitter and Apple Inc are some of the key players operating in the Global Digital Advertisement market. Several M&A's along with partnerships have been undertaken by these players to facilitate costumers with hi-tech and innovative products.

The global Digital Advertising market generated revenue of USD 333.3 billion in 2019. The sudden outbreak of COVID-19 has negatively impacted the global digital advertising market, and the market is expected to grow at a negative rate and is expected to generate revenue of USD 317.6 billion by the end of 2020. However, the market is expected to grow at a CAGR of 7.69% during the forecast period 2021-2026. North America would be the largest market during the analysis period.

Scope of the Report

Products

Advertising plays an important role in determining the image of the product thereby helping the consumers in their buying decision of the product.

Companies

Alibaba, Amazon, Facebook Inc, Alphabet, Microsoft Corporation, Sina, Nokia Corporation, Tencent, Twitter and Apple Inc

Table of Contents

1. MARKET INTRODUCTION 18

1.1 Market Definition 18

1.2 Objective of the Study 18

1.3 Limitation 18

1.4 Stakeholders 19

1.5 Currency used in the Report 19

1.6 Scope of the Global Digital Advertisement Market Study 19

2. RESEARCH METHODOLOGY OR ASSUMPTION 20

2.1 Research Methodology for the Global Digital Advertisement Market Study 20

2.1.1 Main objective of the Global Digital Advertisement Market Study 21

3. INDUSTRY PERFORMANCE 22

4. EXECUTIVE SUMMARY 24

5. LEGAL FRAMEWORK IN DIGITAL ADVERTISEMENT ARENA 26

5.1 General Overview 26

5.1.1 Digital Advertising Regulations in the United States 26

5.1.1.1 General Offers and Claims -Products& Services 26

5.1.1.2 Protecting Consumers Privacy Online 27

5.1.1.3 Made in United States Products 28

5.1.1.4 Non- Compliance 28

5.1.1.5 Laws Enforced by the Federal Trade Commission 28

5.1.1.6 New digital advertising regulations require operational changes 29

5.1.2 Digital Advertising Regulations in Europe 29

5.1.2.1 Amendments in the Proposal of 26 July 30

5.1.2.2 Key Topics: Current Status in the Council's draft e-Privacy Regulation 30

5.1.2.2.1 Anti-spam: Rules for Digital Marketing 30

5.1.2.2.2 Cookies and similar files/tags 31

5.1.2.2.3 Secrecy of electronic communications 31

5.1.2.3 Digital Privacy in Europe 31

5.1.3 Digital Advertising Regulations in the Asia Pacific 32

5.1.3.1 Self-regulatory Codes 32

5.1.3.2 Codes of Advertising Practices 33

6. MARKET OVERVIEW 35

6.1 Introduction 35

6.2 Market Dynamics 37

6.2.1 Market Trend & Drivers 37

6.2.1.1 The upsurge in Robotics & Artificial Intelligence 37

6.2.1.2 A rise in Smartphone Penetration 38

6.2.1.3 Evolving Digital Marketing 40

6.2.2 Market Challenges 40

6.2.2.1 Security & Privacy Concerns 40

6.2.3 Market Opportunities 41

6.2.3.1 Surging Job Opportunities in Digital Marketing 41

6.2.4 Trends Emerging in Digital Advertising Arena Amid COVID-19 42

6.2.4.1 COVID-19 is dominating New Searches 42

6.2.4.2 Google is Banning Bad Advertisements 42

6.2.4.3 Facebook is Banning Advertisements that promote a COVID-19 cure 42

6.2.4.4 Facebook's Advertising Revenue is Taking a Huge Hit 42

6.2.4.5 Amazon is Reducing its Google Advertisements Spend 43

6.2.4.6 Mobile Search Traffic Decreased by About 25% in March 43

6.2.4.7 Cross Network Opportunities Are Growing 43

6.2.4.8 Advertising Revenues are Shifted from Events to Digital 43

7. DEMAND AND SUPPLY SIDE ANALYSIS 44

7.1 Demand Side Analysis 44

7.1.1 Key Facts on Online Advertising Landscape 45

7.1.2 Key Facts on Mobile Advertising 45

7.1.3 Key Facts on Search Engine Marketing 46

7.1.4 Key Facts on Email Marketing 47

7.2 Supply Side Analysis 48

7.2.1 Top Partnerships 48

7.2.2 Top Mergers & Acquisitions 50

7.2.3 Top Product Launches 50

8. DIGITAL ADVERTISING VALUE CHAIN 53

8.1 General Overview 53

8.2 Value Chain Analysis 53

9. MARKET INSIGHTS BY PLATFORM 56

9.1 General Overview 56

9.1.1 Desktop 57

9.1.2 Mobile 58

10. MARKET INSIGHTS BY PROGRAMMING TYPE 61

10.1 General Overview 61

10.1.1 Programmatic Type 62

10.1.2 Non- Programmatic Type 63

11. MARKET INSIGHTS BY AD-FORMAT 65

11.1 General Overview 65

11.1.1 Search Advertising 66

11.1.2 Banner Advertising 67

11.1.3 Social Media Advertising 68

11.1.4 Video Advertising 69

11.1.5 Classified Advertising 71

12. MARKET INSIGHTS BY INDUSTRY VERTICAL 73

12.1 General Overview 73

12.1.1 Retail 74

12.1.2 Automotive 76

12.1.3 Financial Services 78

12.1.4 Telecom 79

12.1.5 CPG Industry 81

12.1.6 Travel 83

12.1.7 Other Industry 84

13. MARKET INSIGHTS BY REGION 86

13.1 General Overview 86

13.1.1 North America Digital Advertising Market 87

13.1.1.1 US Digital Advertising Market 90

13.1.1.2 Canada Digital Advertising Market 93

13.1.1.3 Rest of North America Digital Advertisement Market 96

13.1.2 Europe Digital Advertising Market 98

13.1.2.1 UK Digital Advertisement Market 101

13.1.2.2 Germany Digital Advertisement Market 103

13.1.2.3 France Digital Advertisement Market 106

13.1.2.4 Italy Digital Advertisement Market 110

13.1.2.5 Spain Digital Advertisement Market 113

13.1.2.6 Rest of Europe Digital Advertisement Market 117

13.1.3 Asia Pacific Digital Advertising Market 119

13.1.3.1 China Digital Advertising Market 122

13.1.3.2 Japan Digital Advertising Market 126

13.1.3.3 India Digital Advertisement Market 129

13.1.3.4 South Korea Digital Advertising Market 133

13.1.3.5 Australia Digital Advertising Market 136

13.1.3.6 Rest of Asia Pacific Digital Advertising Market 139

13.1.4 Rest of World Digital Advertising Market 141

13.1.4.1 Brazil Digital Advertising Market 144

13.1.4.2 South Africa Digital Advertising Market 146

13.1.4.3 Other Countries Digital Advertising Market 149

14. COMPETITIVE SCENARIO 152

14.1 Competitive Landscape 152

14.1.1 Market Share of Key Players in Digital Advertisement Market, 2019 152

15. TOP COMPANY PROFILES 154

15.1 Alibaba 154

15.1.1 Key Facts 154

15.1.2 Business Description 154

15.1.3 Key Product/Services Offerings 155

15.1.4 Growth Strategy 155

15.1.5 SWOT Analysis 156

15.1.6 Key Financials 157

15.1.6.1 Revenue Split 158

15.1.6.2 Financial Overview of Alibaba 158

15.1.7 Recent developments 158

15.1.7.1 Merger and Acquisitions 158

15.2 Alphabet 160

15.2.1 Key Facts 160

15.2.2 Business Description 160

15.2.3 Key Product/Services Offerings 161

15.2.3.1 Brand Portfolio of Alphabet 161

15.2.4 Growth Strategy 161

15.2.5 SWOT Analysis 162

15.2.6 Key Financials 163

15.2.6.1 Revenue Split 164

15.2.6.2 Financial Overview of Alphabet 164

15.2.7 Recent developments 164

15.2.7.1 Product Launch 164

15.3 Amazon Inc 166

15.3.1 Key Facts 166

15.3.2 Business Description 166

15.3.3 Key Product/Services Offerings 167

15.3.4 Growth Strategy 167

15.3.4.1 Overview of Amazon Inc 168

15.3.5 SWOT Analysis 168

15.3.6 Key Financials 169

15.3.6.1 Revenue Split 170

15.3.6.2 Financial Overview of Amazon 170

15.3.7 Recent developments 170

15.3.7.1 Product Launch 170

15.3.7.2 Partnership 171

15.4 Apple Inc 172

15.4.1 Key Facts 172

15.4.2 Business Description 172

15.4.3 Key Product/Services Offerings 173

15.4.3.1 Apple Product Ecosystem 173

15.4.4 Growth Strategy 174

15.4.5 SWOT Analysis 174

15.4.6 Key Financials 175

15.4.6.1 Revenue Split 176

15.4.6.2 Financial Overview of Apple Inc 176

15.4.7 Recent developments 176

15.4.7.1 Product Launch 176

15.5 Microsoft Corporation 177

15.5.1 Key Facts 177

15.5.2 Business Description 177

15.5.3 Key Product/Services Offerings 178

15.5.4 Growth Strategy 178

15.5.4.1 Overview of Microsoft Corporation 179

15.5.5 SWOT Analysis 179

15.5.6 Key Financials 180

15.5.6.1 Revenue Split 181

15.5.6.2 Financial Overview of Microsoft Corporation 181

15.5.7 Recent developments 181

15.5.7.1 Product Launch 181

15.5.7.2 Partnership 182

15.5.7.3 Merger& Acquisitions 182

15.6 Nokia 183

15.6.1 Key Facts 183

15.6.2 Business Description 183

15.6.3 Key Product/Services Offerings 184

15.6.4 Growth Strategy 184

15.6.5 SWOT Analysis 185

15.6.6 Key Financials 186

15.6.6.1 Revenue Split 187

15.6.6.2 Financial Overview of Nokia 187

15.6.7 Recent developments 187

15.6.7.1 Product Launch 187

15.7 Twitter 188

15.7.1 Key Facts 188

15.7.2 Business Description 188

15.7.3 Key Product/Services Offerings 189

15.7.3.1 Overview of Twitter 189

15.7.4 Growth Strategy 189

15.7.5 SWOT Analysis 190

15.7.6 Key Financials 191

15.7.6.1 Revenue Split 192

15.7.6.2 Financial Overview of Twitter 192

15.7.7 Recent developments 192

15.7.7.1 Partnership 192

15.7.7.2 Merger& Acquisition 193

15.8 Tencent Holdings Ltd 194

15.8.1 Key Facts 194

15.8.2 Business Description 194

15.8.3 Key Product/Services Offerings 195

15.8.3.1 Service Portfolio, Tencent Holdings Ltd 195

15.8.4 Growth Strategy 196

15.8.5 SWOT Analysis 196

15.8.6 Key Financials 197

15.8.6.1 Revenue Split 198

15.8.6.2 Financial Overview of Tencent Holdings Ltd 198

15.8.7 Recent developments 198

15.8.7.1 Product Launches 198

15.8.7.2 Partnership 199

15.9 Sina Corporation 200

15.9.1 Key Facts 200

15.9.2 Business Description 200

15.9.3 Key Product/Services Offerings 201

15.9.3.1 Sina Corporation, Platforms 201

15.9.4 Growth Strategy 202

15.9.5 SWOT Analysis 202

15.9.6 Key Financials 203

15.9.6.1 Revenue Split 204

15.9.6.2 Financial Overview of Sina Corporation 204

15.10 Facebook Inc 205

15.10.1 Key Facts 205

15.10.2 Business Description 205

15.10.3 Key Product/Services Offerings 206

15.10.3.1 Milestones Achieved by Facebook Inc 207

15.10.4 Growth Strategy 207

15.10.5 Brand Overview of Facebook Inc 208

15.10.6 SWOT Analysis 208

15.10.7 Key Financials 209

15.10.7.1 Revenue Split 210

15.10.7.2 Financial Overview of Facebook Inc 210

15.10.8 Recent developments 210

15.10.8.1 Product Launch 210

15.10.8.2 Partnership 211

15.10.8.3 Business Expansion and Investments 211

15.10.8.4 Merger& Acquisition 212

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