ICT
Online Advertising Market: Increasing Ubiquity of Mobile Phones is Boosting Growth
The increasing focus on digital media, shift from traditional advertising methods such as paper, and broadcast television to internet advertising methods which include smartphones, and tablets are the factors driving the growth of the online advertising market. According to a recent research report from IndustryARC, the online advertising market size was worth between $220 billion to $240 billion as of 2018, and the global demand will grow at a hefty CAGR of 37% to 40% during the forecast period of 2019 to 2025. The report is titled “Online Advertising Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast 2019 – 2024.”
Additionally, the time spent on social media sites such as Facebook, Instagram, and Twitter by consumers has led to the growth of the market. Online advertising or web advertising is a type of market advertising which is delivered with the help of internet. The mobile phone application is dominating among other diverse application segments such as desktop computer, and laptop; it is estimated to grow with a CAGR of 50% to 55% during the forecast period 2019-2025.
According to the analyst of the report, North America is depicted as the key region in the global online advertising marketplace, which held a major share of about 35% to 38% as of the year 2018. The number of TV viewers in the U.S. is anticipated by Forbes to drop 0.2% to 297.7 million and, the number of over the top viewers will grow 2.7% to reach 198.6 million in 2019. The shift of audience towards over-the-top (OTT) viewing is changing the climate of TV ads and raising the demand for the online advertising market.
Online Advertising Market: Disruptive Trends
- The rise of Facebook and Instagram stories; because stories are such a rich, immersive ad format, where plenty of opportunities to experiment with engaging creative. Since Facebook hasn’t yet implemented unescapable ads like Snapchat, brands are at the mercy of users’ thumbs clicking through the story quickly.
- New rules for political advertisements; the 2018 midterm elections have changed the rules for political ads by spending cash on social media advertisements rather than on television advertisements. Candidates must be conscientious about using data and understanding which channels are generating the most impact information, and maximizing spend accordingly.
- Big Data is evidently renovating many profitability industries such as advertising. The communication between advertisers and consumers has changed significantly owing to the advancement in big data technologies which includes Hadoop and distributed data stores.
- Google introduced its artificial intelligence algorithm called Rank Brain, which makes significant advances in interpreting search queries in new ways. Through this algorithm, Google has been successful in interpreting the intent behind a user’s search terms, making for more relevant results.
- Google is replacing its core advertising products such as AdWords and DoubleClick with shiny, streamlined iterations, scheduled to roll out small businesses. DoubleClick will be combined with the Google Analytics 360 Suite to make consolidated service called google marketing platform. This will bring ad and analytics technology together for what the company is billing as an easier marketing experience.
